Once I was talking to my boss at Provident Mutual about exotic options, like barrier, knock-out, and knock-in options. As I described them to him his reactions were: Why would I want to take that risk? But when describing the...
Read MoreJune 2012August 2012CommentsInformation received since the Federal Open Market Committee met in April suggests that the economy has been expanding moderately this year.Information received since the Federal Open Market Committee...
Read MoreThings are weird when you write the second part of an article five years later. I don’t have a strong opinion on some of the arguments between Felix Salmon and “Dutch_Book,” or maybe I have too many opinions,...
Read MoreAll good investment decision-making is forward looking. Whether you are buying or selling, it doesn’t matter where prices have been in the past. Now, that said, price and volume charts may occasionally indicate where there...
Read MoreI get good questions from readers. Here’s one from this post:Is there a reason why life reinsurance companies are better positioned then life insurers?Don’t they face the same problems that they won’t be able...
Read MoreMissing earnings estimates hurts in the short run, but it doesn’t mean much if there is no indication that the overall earnings trend has changed. If the overall trend in earnings has turned down watch out. Prices can fall...
Read MoreThis is a good book and I recommend it to certain people. Thus when you see the number of stars I give it at Amazon, kn0w that for those whom the book is good, it is really good. But there are some who will get less out of the...
Read MoreI’m on the program committee for the Baltimore CFA Society. We hold around 10-12 programs per year, meeting for lunch at the Centre Club in Downtown Baltimore. It’s probably the most visible aspect of the society....
Read MoreWhen it comes to bonds I have four main ideas. Invest in areas where you are more than adequately compensated for the risks. Try to be as unconstrained as possible. After a credit crash, wait for the momentum to return to...
Read MoreI have often owned companies with little to no sell-side analyst coverage. Ask yourself this, how many companies trading on US exchanges are there:That have no analyst coverageThat are US-basedThat have a Market Cap over $250...
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