Finance Theory

Book Review: Philosophy’s Stake in Finance

05/25/2016

Emanuel Derman’s Models.Behaving.Badly is perhaps the best contemporary work of financial philosophy.

Listen to Markets' Signals

03/01/2016

Markets often send distress signals long before the bad outcomes materialize.

The Happy Medium

01/22/2015

Chasing hot technology and super long-term investment opportunities might sound exciting, but it’s often a fool’s errand.

It’s a Big World After All

01/13/2015

US stocks have been hot lately, but a global portfolio remains vital.  

Nobody’s Fool

08/29/2013

It’s a mistake to heavily weight hypothetical past returns when performing due diligence.

Corrective Action

08/05/2011

Understanding and separating the negatives from the positive realities can help guide your investing decisions.

Half Full or Half Empty?

08/03/2011

Debt ceiling dramatics came to a conclusion Tuesday, leaving many frustrated in its wake. Here’s a look around the news at what’s poking that frustration—and largely unnoticed remedies.

Judge Not

09/02/2008
Economic decisions aren't only about money and prices—judging what makes good economic sense can be subtler than many believe.

Don’t Fear Failure

07/15/2008
Investors fearing bank failures shouldn't—failures make way for progress.

Passive Manipulation

05/19/2008
The headlines are full of funky new "economic” indicators, but they can be just as misleading as old-fashioned statistics.

Constructive Destruction

04/09/2008
Stock buybacks hit a record in 2007 for S&P 500 companies, removing an enormous amount of share supply from the market.

Don’t Get High on Someone Else’s Supply

04/02/2008
The law of supply and demand is Econ 101 basics. But few consider it when analyzing stock markets.

Not Quite to the Nines

03/27/2008
Investors tend to justify beliefs by searching out patterns where there are none and assigning meaning to the meaningless.

Unfathomable Miscellany

05/04/2007
We like unfathomable things—they're the stuff good investments are made of.

Foxy Investing

03/23/2007
Many centuries ago, the Greek poet Archilochus wrote: "The fox knows many things, but the hedgehog knows one big thing.

OMG! Big Telecom Returns

03/15/2007
Editor's Note: Today's commentary is written in half English, half Texting language.

To Seek The Grail

03/02/2007
"Whoso pulleth out this sword of this stone and anvil is rightwise king born of all England.

Knowing and Understanding

02/02/2007

- What I cannot create, I do not understand.

- Science is a way of trying not to fool yourself. The first principle is that you must not fool yourself, and you are the easiest person to fool.

Go Global

01/04/2007
If you're like most investors, you probably shy away from global investing, preferring to focus on the S&P 500 and US stocks and mutual funds.

Disciplinary Action

12/30/2006
There's a lot of talk in the popular press these days about an "imminent" US recession and the tired old legs of this bull market.

Asymmetric Investing

12/02/2006
It's pretty rare that anyone finds an investment that can't go down.

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