Efficient Market Thinking

By |2018-01-29T13:13:37+00:00January 17th, 2018|Categories: Global Market Update|Tags: , , , |

Are markets efficient? Photo: Ralf Roletschek. Source: Wikimedia Commons. CC-BY-SA 3.0 When I was studying finance, one of the most hotly debated notions was the Efficient Market Hypothesis. It’s like salsa: in comes in mild, medium, and strong forms, and everyone has an opinion – they like it, they hate it, they base multi-billion dollar businesses on it. At its heart, the Efficient Market Hypothesis says that markets incorporate information into their pricing mechanism. It’s hard to [...]

Nuclear Humility

By |2016-11-17T16:17:10+00:00June 19th, 2015|Categories: Global Market Update|Tags: , , , |

Castle Bravo Blast. Image Source: Wikipedia Can we learn humility from physics? 70 years ago Harry Truman asked the leaders of the Manhattan Project to recommend how atomic power should be used. World War II was wrapping up. Germany had fallen. Japan was on its knees but still defiant. Millions of servicemen were preparing to be redeployed from Europe to the Pacific. But the Bomb was ready. Its components had been tested. Some advisors thought a technical [...]

Ten Commandments for Investors (Part 3)

By |2012-06-12T06:04:22+00:00June 12th, 2012|Categories: Classical Investing, Global Market Update|Tags: , |

The Third Commandment is not to take the name of the Lord in vain. How does this apply to investors?The Third Commandment is often viewed as a proscription against cursing and profanity, and it certainly is that. In modern culture, certain words and phrases are off limits. Even more significant to the ancient Hebrews, however, was the actual name of their God. For in the ancient world, to name something was to have power over that thing—thus [...]