Imagine I offer you the following deal: I will sell you a promissory note so I can expand my business. The note will be subject to the following conditions: I will not begin paying you back anytime soon I am under no obligation to ever pay you back, even in part [...]
Investors, being human, are not always perfectly rational, but sometimes make decisions that are influenced by their emotions or cognitive biases, which can effect market prices in interesting and predictable ways. Such is the one sentence summary and motivating principle behind behavioral finance, a topic I've written about quite a [...]
The S&P 500 finished the year up 11.96% for 2016, marking the eighth straight year in a row the US stock market has posted a gain in what is now the 2nd longest bull market in history. And if this keeps up through March it will become the number one [...]
Imagine an alien race with no concept of money was observing the earth from afar, trying to understand us humans. What might they say about our civilization? I imagine their reports might sound something like this: The humans are unparalleled in their propensity to cooperate in order to achieve their [...]
Last Tuesday, 18.9% of Americans made their voices heard and elected Donald Trump as 45th president of the United States.[1] What immediately preceded and followed the surprise turnout was perhaps one of the strangest handful of days in market history. The Nonpartisan Market? I have had to eat my words in [...]
