Monthly Archives: September 2010

Book Review: Secrets of the Moneylab

Behavioral economics is hot among investors, particularly value investors.  But the real advantage of behavioral economics is probably not to investors, but to businessmen setting their pricing, because men do not look to maximize utility, but rather to do good enough, and get a better deal than peers.  Men don’t think absolutely, but rather relatively.  […]

Book Review: Risk and the Smart Investor

Not every book grabs me at first.  “Risk and the Smart Investor” was one such book.  But it grew on me.  Having been through many exercises in risk control inside insurance companies, I can sympathize with the much more complex job that it is to control risk inside investment banks. I was fascinated with the […]

Twenty Answers from the Author of Risk and the Smart Investor

A little bit ago, I published Twenty Questions for the Author of Risk and the Smart Investor.  Well, David X. Martin got back to me, and here are his thoughtful answers.  I will have more commentary on this as I write the book review, which I am doing immediately after posting this. 1. Q: Imagine […]

Of Investment Earnings Assumptions and Century Bonds

Recently I got an e-mail from my friend Kid Dynamite.  He asked me an interesting question about pensions and long-duration bonds: “back to the concept of century bonds.  I’m not sure if you read my recent pension post (http://fridayinvegas.blogspot.com/2010/09/problem-with-pensions.html) , but I’m having trouble with the concept of pensions investing in 100 year bonds at […]

Redacted Version of the September 2010 FOMC Statement

August 2010 September 2010 Comments Information received since the Federal Open Market Committee met in June indicates that the pace of recovery in output and employment has slowed in recent months. Information received since the Federal Open Market Committee met in August indicates that the pace of recovery in output and employment has slowed in […]

Asset Allocation Book Reviews: 7Twelve and The Flexible Investing Playbook

When I get a book on asset allocation in the mail, I say to myself, “Another book on asset allocation?  What is there to say that is new on the topic?” Tonight I review two decidedly different books, and end up praising the conventional book, and dissing the unconventional book.  Since I am not a […]