Posts filed under “Apprenticed Investor”
My Sunday Washington Post Business Section column is out. This morning, we look at the retail theater that is Black Friday: Beware of bad Shopmas data!
Here’s an excerpt from the column:
“The news media aren’t any better. They breathlessly cover shopping as if it were an Olympic event. The big-box retailers play right into the coverage. Each year, we are regaled with stock footage of the 6 a.m. crush, a near-riot battle for the heavily discounted electronics doodad of which only a few are for sale. It is ugly and crass. I see a scene from “The Hunger Games” rather than a modern industrialized nation gratefully celebrating the bounty provided us.
Footage of people camped out at Best Buy or elsewhere is not remotely a celebration. Rather, it’s a reminder of just how economically distressed a large percentage of our populace is. It’s a Barbie, for crying out loud — do you really need to LEAVE YOUR FAMILY FOR THREE DAYS TO camp out for that?”
We will start to see some of the “data points” Monday, then get the actual information a few weeks later. Don’t bet on accuracy in the initial run of numbers.
Retail theater: Beware of bad Shopmas data!
Washington Post, December 1 2013
Use the news: How to get the most out of financial media Barry Ritholtz Washington Post November 17 2013 Last time out, our topic was the signal-to-noise ratio when applied to investing. We looked at how to reduce the noise you consume in your daily information diet. The goal was to help you…Read More
Twice a year, S&P releases a “SPIVA Scorecard” – a report comparing the performance of Active Managers versus three passive indices. The S&P 500 large caps, S&P MidCap 400, and S&P SmallCap 600 are pitted against the median returns of active managers. In the most recent report, the trailing 12 months returns for these indices…Read More
My Sunday Washington Post Business Section column is out. This morning, we look at the best ways to Use the News. As I noted last time out, its helpful to reduce your noise levels when it comes to investing. This go round the focus on getting more signal. For a change, I am…Read More
Reduce the noise levels in your investment process Barry Ritholtz November 1, 2013 “Signal-to-noise ratio” is an engineering concept that focuses on the amount of useful information being received compared with false or useless data. This is an especially important concept to investors. Over the past few years, I have been reducing the…Read More
We all know that the U.S. has a looming retirement crisis. The baby boomers do not save enough for their golden years. Social Security is funded at levels that are less than ideal. Private savings in the form of Individual Retirement Accounts and tax-qualified plans like 401(k)’s also appear to be insufficient. One of the…Read More
Well now, let’s have a look around here. Hmmm, nicely typeset. Headline, URL, date are in the usual places; sidebar for other articles off to the right. Hey, this doesn’t look very different than it did at my blog, the Big Picture. What’s different? Oh, you out there. I see, you are a somewhat different…Read More
Category: Apprenticed Investor
> My Sunday Washington Post Business Section column is out. This morning, we look at “noise” levels, and what you can do to reduce them. Here’s an excerpt from the column, that asks: Do these inputs add to signal or to noise? • News: Most of it is actually old. By the time information…Read More
Category: Apprenticed Investor
How Shiller helped Fama win the Nobel Barry Ritholtz, Washington Post October 20 2013 At the University of Chicago, there are two professors of economics named Eugene Fama. The first — let’s call him Fama the Younger — started in the 1960s. He developed a profound insight about the markets. This Fama observed that…Read More
My Sunday Washington Post Business Section column is out. This morning, I look at how Eugene Fama’s early insights were nearly eclipsed by his latter bad theories. Not to give away the ending, but if it weren’t for Robert Shiller’s criticism, Fama may very well not have won. Here’s an excerpt from the…Read More