The Best of the Aleph Blog, Part 42

Photo Credit: michel D’anastasio

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In my view, these were my best posts written between May 2017 and July 2017:

The Biggest Problems For Investors Today

The “two-minute question” with a half hour response.

Perceived Versus Real Risk Tolerance

Why questions about objective measures of risk tolerance need to be asked before querying someone about their subjective risk tolerance.

Overvaluation is NOT Due to Passive Investing

Active managers as a group are very similar to the index.? That shares move from active to passive managers does not affect their valuation, just as one active manager selling to another does not.

Goes Down Double-Speed (Update 4)

Why the current bull market, the second longest on record, is both amazing and boring at the same time.

The Doubling Rule

The Doubling Rule, Redux

Slightly more complex than the “Rule of 72” but more accurate as you get further away from 8%.

The Rule of K: If R is the interest rate multiplied by 100, money doubles in K/R years, where K = 70 + (R ? 2)/3

Why Social Security Should not be Invested in the Stock Market

This was rejected at the founding of Social Security because of the socializing of America’s private companies as a result.? Also, given that politicians would never make decision immediately after a crisis, there would be the tendency to buy in when expensive, and becoming the ultimate dumb money of the market.? Assets subject to the whims of politicians rarely get managed well — they are the worst at greed and fear.

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Note: this is the last “Best of Aleph Blog” post for a while.? My policy was don’t decide on what’s best for a year.? As it is, given that my posting rate has slowed, these posts may come even more rarely, because there won’t be enough in some three month windows to justify a post.

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