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 [...]
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 [...]
(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, [...]
What causes inflation? Source: Cleveland Fed, World Market Advisors I’m old enough to remember public service ads on television asking us that very question. They had characters playing grocery shoppers, business managers, and blue-collar workers. The ad blamed shoppers for not looking for the best deal, [...]
Is investing an art or a science? F-5E Tiger II. Source: Wikipedia This seems a straightforward question. Portfolios are matters of math, return, cash flow, and valuation. But putting them together is complicated. It’s not just how different investments behave in different economic environments, it’s also [...]
