The 10yr Treasury is still a decent risk free rate, but the U.S.’s sovereign debt load will soon match Greece‘s. It may already exceed that level if you count the unfunded liabilities of entitlement programs. Continue reading “All about Risk free Rate”
The “Efficient Markets Hypothesis” is a popular target of anger and derision among lay critics of the econ profession.
How can financial markets be “efficient” when they just crashed and took our economy down with them? And when sensible people like Bob Shiller, Nouriel Roubini, Bill McBride, et al. were screaming their heads off about a housing bubble years before the pop?
Of course I have some sympathy for these complaints. But the more I learn about and teach finance, the more I learn what an important and useful idea the “EMH” in fact is. I don’t want to say that the EMH is unfairly maligned, but I do think that its vast usefulness is usually ignored in the press.
First of all, people should realize that the EMH is misnamed—it’s not really a hypothesis, it’s not about “efficiency” in the economic sense of the word, Continue reading “Why the Efficient Markets Hypothesis is Fatally Flawed, But Why The Idea Underneath It Is Kinda Useful But Not Entirely Watertight.”
And A crucial investing question: Do you know your time frame?
To cut short I am sharing 9 facts on investing below :-
1. Nine out of 10 people in finance don’t have your best interest at heart.
2. Don’t try to predict the future. Continue reading “9 Facts about investing”
Herb Greenberg (CNBC): we can ignore the Mayans.
Lauren Young (Reuters): I often like the social media iteration of people more than the in-the-flesh version.
Tom Brakke (Research Puzzle): In investing and politics, detailed analysis and an effective ground game beat belief and bluster. Continue reading “Some Learning From Financial Year 2012-2013”
Barclays economists forecast a modest acceleration in world growth next year to 3.3 percent from 3.1 percent. They recommend overweight developed market equities relative to fixed income. They base that on valuation. Bonds are too expensive. Equity still looks cheap, especially in Europe.
And how will Europe fair? Even with anemic growth Continue reading “Top Picks For 2013 – By Barclays”