States Most & Least Dependent on Federal Government

WalletHub

Source: Wallethub

Category: Digital Media, Taxes and Policy

Annualized Returns & the Average Investor

annualreturns

Source: JP Morgan Guide to Markets 2Q|2014

 

Have a look at the chart above. It is from the quarterly chart book from JPM (which I have been referencing for years).

Average annual returns for individuals over the past 20 years? 2.3%. That fails to even keep up with inflation. REITs, commodities, equities and even bonds all wildly outperform the average retail investor.

The bottom half of this graphic shows what happens when investors are left to their own devices: They engage in emotional decision-making (AKA Fear & Greed), they “performance chase,” they fail to have any form of risk management in place, pay high fees, and exhibit an almost willful lack of discipline.

 

Continues here

 

 

 

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Category: Investing, Really, really bad calls

10 MidWeek AM Reads

Some morning reads for your enjoyment: • The Short Guide to Capital in the 21st Century (Vox) • Renewables are hot again: Goldman’s Stuart Bernstein says VCs are coming back to clean tech. (WSJ) see also Environmental Defense Fund head says CEOs underestimate the effects of climate change. (WSJ) • Investor Sentiment and the Cross-Section of Stock…Read More

Category: Financial Press

What You’re Hearing Is Noise

In a new project at Bloomberg I will interview some of Wall Street’s most influential thinkers. I’ll share more details with readers when we get closer to a launch date, but several consistent themes have become clear to me, even at this early stage. The one I want to discuss this morning is the concept…Read More

Category: Apprenticed Investor, Cognitive Foibles, Financial Press, Investing

Michael Lewis on Charlie Rose

Michael Lewis discusses his latest book: “Flash Boys: A Wall Street Revolt.”

Category: Regulation, Trading, Video

A New Idea on Bank Capital

A New Idea on Bank Capital Hamid Mehran and Anjan Thakor Liberty Street Economics  April 07, 2014     How does any firm decide on its capital structure—how much equity (capital) to use, how much debt? And what does research tell us about why banks have so much more financial leverage than other firms? How…Read More

Category: Credit, Think Tank

Wind, Solar and Hydro Could Power All 50 States

It’s a MYTH that We Need Fossil Fuel Or Nuclear The big oil, gas, coal and nuclear companies claim that we need those energy sources in order to power America. Good news: it’s a myth. Mark Diesendorf – Associate Professor and Deputy Director, Institute of Environmental Studies, UNSW at the University of New South Wales…Read More

Category: Energy, Think Tank

The Daily Routines of Famous Artists and Scholars

Source: Twisted Sifter

Category: Digital Media, Psychology

10 Tuesday PM Reads

Some reads for your trip home this evening: • No, Current Sentiment is not like March 2000 (Marketwatch) •  Manipulate Me: The Booming Business in Behavioral Finance (Bloomberg) • A Major Demographic Tailwind Is Coming That Could Make The US Boom For Years (Business Insider) • Retirement Advice, Without the Sugarcoating (NY Times) • Uber vs….Read More

Category: Financial Press

The New Gilded Age

Source: Businessweek

Category: Economy, Taxes and Policy