Let’s clear up misunderstandings about risk and volatility
A risky investment may be volatile, but not every volatile investment is risky.
Part 1: The Field of Play
My thoughts about inflation
Sensible professionals wondered if they should take up hunting and fishing
Is the Federal Reserve driving the stock market?
While the Fed had no explicit mandate to focus on the stock market, the effects of the run-up in prices seemed to me a legitimate concern
The impact of Millennials on the stock market
Today the Millennial generation is engaged in earning, saving and investing.
Let’s cut to the heart of how risk and uncertainty impact diversification
Diversification is inadequate as a risk management technique and too primitive for the new environment of volatility and uncertainty.
Active investing is the only way to superior returns
A small percent change in total returns achieved both before and after retirement can make a huge difference in your standard of living after retirement
The rise of passive investing and opportunities for active investors
The rise of passive investing and systematic investing may lead to greater stock market inefficiency. It will have little negative impact on active investors.
The joy of higher return with no more risk
If we calculate the value of a common stock to be only slightly higher than its price, we’re not interested in buying
Many investors just don’t understand the risk/reward trade-off
Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain.
The great investors and extreme volatility
Be prepared financially and psychologically to live through a series of bull markets and bear markets because in the long run common stock will pay off enormously and the next bull market will carry prices far higher than this one
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