Posts filed under “Investing”
Last summer in Boston, the Trustee Leadership Forum for Retirement Security held its annual meeting at Harvard’s Kennedy School. Trustees and representatives of various state pension funds listened to explanations about the challenges facing endowments and pension funds.
The conference is an attempt to explain why so many state pensions are underfunded and underperforming. The event was run by Jay Youngdahl, a senior fellow at the Hauser Center for Nonprofit Organizations at Harvard University. Youngdahl is the author of “Investment Consultants and Institutional Corruption,” and as you might imagine, there was very little in the way of minced words at this event. I was invited to give a presentation to this group on how cognitive bias and performance-chasing leads to investing failures (you can see “The High Cost of Neuro-Financial Errors” here).
A large part of the impetus for this sort of conference is the solidifying consensus that what has become known as the Yale model — outsized investments in hedge funds, venture capital and private equity — no longer works. Indeed, the performance numbers for the past 10 years make it clear that this model has failed to live up to its promise for a while, perhaps because there just aren’t enough good alternative investments to go around. Note that none of this is cutting-edge theory or newly discovered knowledge. Rather, it is a result of institutional inertia, where even a failing approach to investing holds on to its adherents long past its sell-by date.
Two recent articles with related themes caught my eye. They are important for anyone who manages money, either professionally or for themselves. Together, they may just indicate a turning point in the debate on what might be the response to anthropogenic global warming. The first, from former Treasury Secretary and Goldman Sachs Chief Executive Officer…Read More
Jeff Saut dug into the archives for this one on Monday: “Money managers are unhappy because 70% of them are lagging the S&P 500 and see the end of another quarter approaching. Economists are unhappy because they do not know what to believe: this month’s forecast of a strong economy or last month’s forecast of…Read More
Curate your personal investment resources Barry Ritholtz Washington Post, June, 15, 2014 One question I get all the time from investors is “How do you sift through all of the news, data and media?” thrown at investors each day. I use some time-saving methods to quickly plow through a huge volume of material. If…Read More
Take Apart: Overall, it’s a swing in the financial fortune of one of the country’s top private universities and one of the world’s most esteemed Jewish institutions of more than $1.3 billion, well more than 10 times the losses from the portion of Yeshiva’s portfolio invested with Madoff. Students who applied to and enrolled at…Read More
Source: Research Affiliates The chart above comes to us from Research Affiliates. It notes: Through March 31, 2014, the three-year cumulative return of emerging market stocks as measured by the MSCI Emerging Markets Index is — 8.35%, while that of U.S. stocks as measured by the S&P 500 Index is 50.73%. That raises a…Read More
A few years ago, I started pulling together my favorite Trading Rules & Aphorisms. It turned out to be a popular post, and so we added “Rules” as a new category. Since then, I have taken to updating this sporadically (see this).
We are overdue for an update. What follows are the smartest and most insightful perspectives from traders, analysts, economists and investors on what to do — and what not to do — when it comes to markets that have been previously published on TBP.
Here is the latest update:
Trading & Investing Rules, Aphorisms & Books
• In Defense of the “Old Always” (Montier)
• The golden rules of investing (India)
These are more general rules, not necessarily about investing:
If you have any suggestions for any good lists of rules I may have missed, please link to them in comments. If they are worthy, they will get added to the list.
My own trading rules and favorite Trading Books are after the jump
Each morning, I go through a similar routine: I wake up (no alarm clock), go to the kitchen to get a cup of coffee (this is my machine of choice lately), launch a script that opens 40 or so Firefox tabs. As part of my morning research, I quickly scan this series of websites to…Read More