The press tried to find reasons to attach to the drop, but they forgot a basic fundamental fact of finance. With higher returns comes higher volatility. It's that simple. If we define the end of the bull market to be one which experiences a 20% correction, then the current bull market is the 2nd longest in history! As shown below, the longest bull market ended in March … [Read more...]
Outlook 2018
It’s the end of the year and as we enter 2018 investors will ponder on what the future will bring. As, like last year’s popular December issue, I collected a bunch of links to investment and economic outlooks by a variety of financial institutions. Do keep in mind Credit Suisse’s Deputy Global CIO Burkhard Varnholt who said “Here’s the thing: none of us can predict the … [Read more...]
Why the iPhone 8 Plus at $799 is cheap
Yes, the new iPhone 8 Plus is a bargain. And if you see my logic, you will agree too. I'm a proud owner of Apple's new phone from October 2017. My previous phone was the iPhone 5 which I purchased in February 2013. It was a great phone and I would have held it for another year if my wife didn't leave it in the sun on the beach at Protaras. It was in a bag but at over 40 … [Read more...]
Video: A Variant View on Indexing and Passive Investing
The CFA Institute will invite a limited number of Charterholders to speak at the annual conference in Hong Kong in May 2018. To be considered you had to submit a 15-17 min video on a topic. Below is my submission which I share with you. … [Read more...]
Wall Street Arguments On Bitcoin Are Plain Wrong
The Bitcoin mania continues as greed is part of human nature and grandmas to professionals get involved. The professionals' argument is that it's not correlated to other asset classes and adds to diversification. Former portfolio manager of the University of Chicago and current CIO of a crypto hedge fund, Ari Paul, thinks that endowments should look into crypto. He is quoted … [Read more...]
