Much modern investment theory rests upon the concept of a risk-free rate, but like other assumptions behind the capital asset pricing model et al. recent financial crises have served to highlight the risks of becoming complacent. Unlike the other assumptions however, the concept of a risk free rate is one… Read the article
Month: May 2012
Forecasting Mumbo Jumbo
People get paid a lot of money to do things which, in the cold light of day, they’d probably be quite ashamed to admit. I mean, of course, forecasting economic data.
Even worse, other people move vast sums of money around in reaction to whether or not… Read the article
12 October 1893, Atlanta (GA) Constitution:
Advice to those who want to get rich. Buy low and sell high.
GEO. S. MAY, Care May Maniel Company.
The golden rule of investing is to buy low and sell high. It’s a simple rule which guarantees positive returns. It’s so straight forward… Read the article