Archive for January, 2013
Peace Dividend and Fiscal Policy Debate David R. Kotok January 27, 2013 “The Obama administration’s fiscal plans anticipate a peace dividend after withdrawals from wars in Iraq and Afghanistan. The Republican Party has reasonably argued that it is unrealistic to expect this quiet to last. At the very least, if military expenditures…Read More
My Sunday Washington Post Business Section column is out. This morning, we look at the advantages of avoiding complexity in your investment process. The print version had the simple headline Simplifying Your Investment Strategy while the online version used the hedder Keep it simple, avoid the pitfalls.
There are know advantages to certain complex investing strategies, but these complexities become harmful disadvantages most of the times, as Humans are emotionally unable to follow them.
By creating an investment plan that is simple and easy to follow, you make it more likely that you will ultimately succeed and reach your goals. Hence, all of the familiar themes get mentioned in my focus on simplicity: ETFs, lower costs, diversification, rebalancing, dollar cost averaging, etc.
Here’s an excerpt from the column:
“We must recognize our own behavioral errors. To be blunt, you are not likely to become a cognitive Zen master anytime soon. But a little enlightenment could keep you from making some common investing errors.
Knowing these limitations, we can design an investment plan to circumvent the behavioral pitfalls. And a good step is to simplify. Toward that end, keep these 10 ideas in mind when approaching your portfolio”
The 10 ideas are not groundbreaking — but they are often overlooked.
Less can be more.
Keep it simple, avoid the pitfalls
Washington Post, January 25 2013
Equity Market Review Jan 25 2013 Economic data and market technical breadth data continue to support a bullish tone. Fund Flows and rotation to equities continues to occur. The only fly on the ointment is that sentiment data is starting to bubble up, which could lead to a short-term correction soon, however strong tape action…Read More
• 195bhp • Weighs 1900lb • $3,000,000 – 4,000,000 rare Source: Classic Driver
My Sunday morning reads: • Mary Jo White will Make Them Pay (and Confess) (NYT) • Has Apple Lost Its Cool to Samsung? (WSJ) but see Apple’s Stock Drop Might Bite Hedge Funds Badly (Forbes) • Shiller: A New Housing Boom? Don’t Count on It (NYT) • Just who should we be blaming anyway? (Economist)…Read More
Category: Financial Press
This week on Here’s the Thing, Alec talks with Grammy-winning guitarist Peter Frampton. “Sound is very inspirational to me,” explains Frampton – and it always has been: he started playing guitar before he was 8 years old. Frampton talks about his musical roots in England, playing in bands like The Preachers and The Herd. At…Read More