Few papers have received so much unwarranted attention as Reinhart & Rogoff’s “Growth in a time of debt”. Two years ago Robert Shiller of Yale wrote a very critical piece [ … ]
Category: Myth Busting
(Popular Myths of the Economy and Markets….BUSTED!
Sell in May and Go Away?
As May rolls around you’re bound to hear an endless number of pundits and market participants discussing the “sell in May” phenomenon. CXO Advisory has an excellent data analysis of [ … ]
Japan Isn’t Bankrupt
I’ll keep this short and sweet. I’m not a big fan of the Japanese economy at present or what the policymakers are doing to drive the economy/markets higher. I think [ … ]
The Biggest Myths in Investing
The following ten posts include some of the biggest myths in the investing world. I hope you find them educational and informative. If you finish this and feel ultra nerdy [ … ]
Bernanke on Why Rates Might Rise
One of the more common questions I get in the Ask Cullen section is “what if interest rates rise in the USA?” Of course, that would have broad ramifications on [ … ]
Social Constructs, Self Constraints & Monetary Myths
I really liked this piece by Paul Krugman on money in general. Of particular importance is this paragraph: “For people like me, on the other hand, the economy is a [ … ]
The Biggest Myths in Economics
Heidi Moore asked a good question on Twitter yesterday about the most prominent myths in economics. I started to list a few, but I thought it might be worth touching on a handful of the more destructive ones in some detail. A lot of this will be very familiar to regulars, but should provide a nice summary regardless. So here we go:
Bad Inflation Bets and Why They Were Bad
Brad Delong rightly slams Austrian economist Robert Murphy this morning for a bet he made in 2009 regarding inflation. Murphy stated that headline inflation would hit 10% by January 2013. Well, [ … ]
Outperforming the S&P 500 is not Easy. Don’t Be Fooled Otherwise.
I was browsing MarketWatch and noticed this article titled “Beating the market is easy”. It’s a catchy title and I like to beat the market so I clicked on the [ … ]