It’s Time to Eliminate the Term “Passive” Investing

If you’re not wedded to the term “passive investing” you should probably stop using it. It’s not just misleading, it’s a fundamentally flawed concept.


Margin Debt Is Acting Curiously

The unique behavior margin debt held in NYSE accounts this year continued in July. After looking like it had reached a structural peak in February, margin debt surged back in June. Now the latest data point for July shows NYSE Margin Debt dropped by about $4 billion.


The Housing Market is Softening

The US housing market appears to be softening a bit after a torrid run-up in the last 18 months. National home prices, as tracked by the Case Shiller index, had jumped at nearly a 15% rate of change year over year as of earlier this year.  But the pace of…

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Recession Or Expansion – How Much Does It Really Matter To Equity Investors?

Few questions in economics or finance garner as much emotion and flamboyant diction as to where is the economy “heading”. Instead of prognosticating on the difficult question of where the economy is heading, today we want to ask how much does it really matter to equity investors where the economy is?


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.


Some More Q&A…

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


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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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.


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:


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?”‘


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


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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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):


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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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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