Monthly Archives: August 2011

The Rules, Part XXVI (Efficiency vs Stability)

T+1 will raise volatility.  Often increases in the technical efficiency of information or trading systems increase volatility, because people can act precipitously on information, all at the same time. There was an effort in the early 2000s to make almost all securities settle as a rule in one day.  Three days was the rule for […]

Book Review: Saving Capitalism from Short-Termism

This book was surprisingly good, and ambitious.  It takes on the short-term nature of our business culture in many areas: The nature of the problem is that the owners no longer work for the corporations, and so managers run companies for shorter term objectives.  Owners would care more about the survival and long run profitability […]

On Long Only Equity Investing in Bear Markets

A reader sent me the following question: Hi David, this is shall be link to your impossible dream part 2 question. You mention in the article date May13 that we are probably at #4 part of cycle (looking back great called) Where are we in the part of the cycle? ( I would assume we […]