europe

How to jumpstart the Eurozone economy

The stagnating Eurozone economy requires policy action. This column argues that EZ leaders should agree a coordinated 5% tax cut, extension of budget deficit targets by 3 or 4 years, and issuance of long-term public debt to be purchased by the ECB without sterilisation.

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Some More Q&A…

Here’s the rest of the QE. You guys keep asking harder and harder questions. Ease up next time, okay?

GFAP

Is the Global Financial Asset Portfolio the Perfect Indexing Strategy? – Part 2

Last week I presented the Global Financial Asset Portfolio (GFAP).  In case you missed it here’s a brief summary: The GFAP represents the current allocation of the world’s financial assets. The GFAP is the only pure “passive” index as this is the index that gives you “what the market gives you”. The…

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bull

What Stage of the Bull Market Are We In?

Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.

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Three Things I Think I Think

Since I am still working through the Q&A from last week I figured I’d take some of the questions for a segment of three things:

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How To Respond to Someone Screaming About “Money Printing”

‘How do you respond to someone who is constantly claiming that inflation and therefore interest rates are bound to shoot up with “all of the money the government is printing?”‘

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Learning How to Make Progress From Chris Pratt

“A personal finance crisis is almost inevitable unless you address the truly important tasks in your life before they become urgent.” – Carl Richards

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Housekeeping: You Asked For It….

Okay, I got a TON of complaints after turning the comments off last week so I am going to test an alternative this week.  I am turning Disqus on with the hope that user registration and a more organized commenting system makes the moderation and handling much simpler from my…

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EUROUS

Europe vs USA: the Unemployment Divergence

Here’s another perspective on the incredible divergence in the US economy and the European economy (via Calculated Risk):

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The End of Stock Picking

Jason Zweig has a nice piece in yesterday’s Wall Street Journal on the end of the stock picking asset manager.  He notes: The debate about whether you should hire an “active” fund manager who tries to beat the market by buying the best stocks and avoiding the worst—or a “passive” index…

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myth

This Commonly Referenced USD Purchasing Power Chart is Useless

You’ve almost certainly seen the chart below over the years – it shows the purchasing power of the US Dollar over time.  It looks terrifying.  And it’s constantly cited by hyperinflationists and other people trying to convince you that the world is quickly coming to an end thanks to the “fiat…

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money

Is Wealth and Income Inequality Inevitable in a Capitalist System?

Good question here from the forum today: “Is wealth and income inequality inevitable in a capitalist system?” I discuss this a bit in my new book, which, in my opinion, is a great primer for Thomas Piketty’s book on inequality.  If you want to understand Piketty my book lays the…

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It’s Not a Chase For Yield, It’s a Chase For Fees

“One lesson from 2008 is that if it’s very complicated and you don’t understand it, maybe you shouldn’t buy it.” – Harry Markowitz

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Q&A – Ask Me Anything

Since I am trying out the site without comments I figure the least I can do is open things up to a Q&A more often.  Feel free to have at it.  You can rip me a new one for closing comments, ask me something nerdy or whatever you want.  Just…

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2 Bullish Macro Indicators

Sometimes it’s easiest to understand the big picture with the simplest indicators.  And two of the more trust ones in the macro arsenal are the PMI reports and the weekly jobless claims reports.  They’re not exactly “real-time”, but when you’re taking the macro view (which is an inherently longer-term perspective)…

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