Population

Emotions and Market Cycles

We know that emotions, not math are the primary source of investor return when it comes to individual investors.  It’s not the allocation, it’s not a checklist, it’s the narrative or story that people tell themselves. The following picture is a great example of how emotions impact the investment outcome.  It usually gets trotted out […]
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Whoopty doo

Why let facts and logic get in the way of an ideological debate…  
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I Guess Size Matters…

When it comes to the performance measurement of the stock market, the S&P 500 is considered to be one of the most widely followed and accepted benchmarks.  The interesting thing about the S&P 500 is that it is a market cap based index, i.e. the bigger the company the more influence it has on the […]
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You May Not Be As Diversified as You Think

One of the core principles of the asset management industry is diversification and asset allocation. You want to own a portfolio of differently correlated investments, i.e. when one zigs the other should zag. A critical component of this is the correlation coefficient between two variables. Correlation is measured between -1 and  +1.  Perfectly negatively correlated […]
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San Diego Real Estate or The Stock Market

San Diego Real Estate or The Stock Market? I recently was in a conversation about how great the returns in San Diego Real Estate have been since the “recovery” began and how they made the stock market look terrible. Now this is difficult conversation to have – because it’s like comparing a cantaloupe to a […]
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Population

We hear a lot about the “aging” of the modern economies – it is true that most of the developed world economies are aging.  Whether it is better nutrition or healthcare, people are now living longer lives. When Social Security first started paying benefits in 1940, there were 159.4 workers per retiree, in 2010 that […]
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