Can we learn about investing from puppies? Image: João Braun. Source: Pixabay. There’s a study of probability and random walks called “A Drunk and Her Dog.” The idea is that if a person comes out of a bar – heavily intoxicated – and starts wandering home, [...]
I saw three bears near my home last week. Photo: Ron Shawley. Source: Wikipedia. CC-BY-3.0 It was a mama-bear and two cubs. They were crossing the road right outside my house, and I had to come to a complete stop to avoid hitting them. They’ve been [...]
How can we tell the signal from the noise? Photo: Doug Tengdin. Source: Wikipedia. Readings from a device with poor signal isolation. The middle of the plot shows lower noise levels A signal-to-noise ratio is a good way to think about markets. Every day, the media [...]
Can we learn about investing from fishing? Photo: Doug Tengdin. All rights reserved. I grew up fishing. My mother used to tell of how she took me out fishing when I was less than a year old. Every year My family in Minnesota would trek up [...]
Can the population of wolves in Yellowstone National Park teach us something about markets? Source: Flikr. CC0. The Grey Wolf used to be the dominant predator in North America. Running in packs, wolves are formidable. The largest species of the dog family, the average wolf weighs [...]
(A quick note: My apologies for a long absence. The past month has been very busy. But this article is just a relevant now as when I started writing it a month ago. Thank you for your patience!) How do we fight inflation? Source: Pixabay. CC0. [...]
This seems crazy. Rocket attack. Photo: Sgt Wilks, No 5 Army Film Unit. Source: Wikipedia. Public Domain. “In a crisis, all correlations go to one.” That is, a big enough crisis affects us all. That’s what happened with Covid, that’s what happened in the financial crisis, [...]
How should we invest during a war? Photo: Sgt Wilks, No 5 Army Film Unit. Source: Wikipedia. Public Doman. Most of us didn’t see this coming. When we look back at Wall Street’s predictions for 2002, very few analysts predicted a Russian invasion. And no one, [...]
Have you ever experienced a rough flight? Photo: Jarrah Tree. Source: Wikipedia. CC0. We’ve all been there. Watching a movie, or in the aisle stretching our legs, when the captain chimes in on the speaker: “Ladies and gentlemen, the radar has detected some turbulence up ahead. [...]
Is inflation real or monetary? Source: Dallas Fed, World Market Advisors Last week I discussed the inflation equation, the formula that Milton Friedman popularized to explain the double-digit inflation of the 1970s. MV = PY M is money, V is velocity, Y is the real economy, [...]
