Good Monday morning! Some reads to start you off:

• Memo to the Passive Investing Taliban (The Reformed Broker)
• Europe Stocks Cheaper Than Last Recovery as Profits Rebound (Bloomberg) see also Bill Nygren Boosts European Equity to over 40% of Portfolio (Value Walk)
Margin of safety: The 3 Most Important Words in Investing (Motley Fool)
• Will Mom and Pop investors blow it again? (MarketWatch) see also Greater and lesser rotations (FT Alphaville)
• Everything you know about immigration is wrong (Wonkblog)
• Why You Shouldn’t Trust Financial News (U.S. News)
• The Fed, Lawrence Summers, and Money (NYT)
• 34 Insights from Nassim Taleb (Farnam Street)
• Why Founders Fail: The Product CEO Paradox (Tech Crunch)
• The Gorilla Lurking Where We Can’t See It (WSJ)

What are your reading?

 

Doubts Arise Over U.S. Dollar’s Strength
Chart
Source: WSJ

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “10 Monday AM Reads”

  1. theexpertisin says:

    Perhaps a consequence of bringing into citizenship millions of hard working, thirsting to be educated immigrants will be to make the present tens of millions of current citizens on the dole – some now for four generations- even less apt to get out and make something of themselves, being content to let current and newly minted citizens provide for their way of life.

    I wonder how long it will take our hard working new citizens will see the situation for what it is and vote for closure on much of the free stuff for the welfare class, practicing a lesson from their country of origin?

    • Biffah Bacon says:

      This is a popular narrative. It is not a true narrative necessarily, or data-based narrative, but it is a satisfying morality play for some and made Ronald Reagan president.

      What’s your proposed final solution?

  2. Jim says:

    The 10,000 hour rule is bunk. Genetics plays a part as does how you train and practice. Same thing applies in trading & any endeavour that requires you to use your body & your brain. http://www.outsideonline.com/outdoor-adventure/media/books/How-Athletes-Get-Great.html?page=all

    Applying the Pareto principle to the CFA Exam. It looks like he reads Tim Ferris. http://dynamichedge.com/2013/08/08/accelerated-learning-hacking-the-cfa-exam/

    Both articles highlight several important concepts. Namely that you are responsible for your own success and to study your performance scientifically to improve your performance. Don’t rely on your brain but data as your brain wants to fool you.

  3. S Brennan says:

    If “Everything you know about immigration is wrong”…that condition will only get worse after you read Ezra Klein’s article. Just as Ezra was wrong when he encouraged “liberals” to support the Invasion of Iraq with false arguments, he is wrong here. Below is the post I made on the subject after the propaganda organs geared up and started put out the official line for “smart people” to parrot. Please note the graph I includ and compare it to Ezra’s storyline, it’s important, because it proves that Ezra’s story is, like his Iraq Invasion arguments, based on falsehoods. What changed was the “Immigration and Nationality Act of 1965″ see Wikipedia for details, but it was LBJ’s apologia to “plantation owners” hurt by his civil rights bill the year before.

    =============

    S Brennan
    August 2, 2013
    If you ask either the left [yeah..I know], or the right, it’s easy for the USA to create new jobs, just bring in more people. Whether it’s Riverdaughter, or Rush Limbaugh, all agree, the more we let in, the more jobs we create…clearly, we should let in everybody who wants in…probably a few billion, then [according to the script], we’ll have billions and billions and billions…[sorry for going Sagan] more jobs. What a no brainer, like an Easy Button huh?

    It may seem counter intuitive…and the graph link below shows it to be a complete lie…but dammit, why would anybody in power lie about something like this huh?

    …and don’t say money and power over workers when there too many people for the number of jobs available, because that just doesn’t wash, except with people that are obvious racist xenophobe types…like Barbara Jordan and Caesar Chavez [two of the worst..BTW].

    http://www.upa.pdx.edu/IMS/currentprojects/TAHv3/Content/Graphics/Immigrant_Pop_1900-2007_Graph.pdf

    =============

    I suggest Ezra write an article on something he knows…say…something like “Consummate Careerist Moves You Can Use”

  4. mpetrosian says:

    Josh Brown is the man.

  5. alexeck says:

    Am I wrong to shrug at Europe, when I consider its correlation to our own markets? Example: http://tinyurl.com/n7ugnne

  6. rd says:

    The margin of safety concept is true financial engineering. This is how engineers design things so they will function under most circumstances, especially the times when you need it to function. It is why bridges are still standing after hurricanes and earthquakes.

    For my portfolio, I periodically revisit its value assuming a Shiller PE of about 16 and average bond interest of 4%. I figure at these values I can reliably get 6% a year from the portfolio over a 30 to 40 year period. I can’t do anything about the valuations that the market assigns to the current investments but I can do something about how much I save to achieve my goals.