Entries by Alex Hilbert

Black swans & the ‘10 best days’ myth: Can investors prepare for market outliers?

Black swans & the ‘10 best days’ myth: Can investors prepare for market outliers? by Mebane Faber | Jan 4, 2017 | UpClose | How much effect do market outliers have on long-term performance? Can the investor prepare for these anomalies, or are they truly ‘black swans’ that cannot be managed? Editor’s note: Many thanks […]

10 Reasons Investors Need Active Management in Retirement

Without employment earnings to offset portfolio losses, protecting portfolio value is essential for retirees. Do so with an active management portfolio! by Linda Ferentchak | Jun 8, 2016   1. The traditional age-adjusted portfolio isn’t working Traditional asset allocation maintains that as individuals age and approach retirement, their investment portfolios need to reduce exposure to […]

Treasuries Rise, U.S. Stocks Mixed Before Holiday: Markets Wrap

by Cecile Gutscher and Jeremy Herron December 22, 2016, 6:49 PM EST European banks lift equities, dollar resume its advance Gold set for seventh weekly decline, crude falls below $53 Treasuries headed for the first weekly gain since the election, while U.S. stocks fluctuated in thin trading before the holidays. European equities halted a two-day […]

On the Origin of Money

“On the Origins of Money” by Carl Menger first appeared in the Economic Journal 2 (1892): 239–55; translation is by C.A. Foley. Contents I. Introduction II. Attempts at Solution Hitherto III. The Problem of the Genesis of a Medium of Exchange IV. Commodities as More or Less Saleable V. Concerning the Causes of the Different Degrees of Saleableness in Commodities […]

Stealing Deposits: Deposit Insurance, Risk-Taking, and the Removal of Market Discipline in Early-20th-Century Banks | Cato Institute

By Charles Calomiris and Matthew S. Jaremski December 21, 2016 Deposit insurance spread throughout the world in the latter half of the 20th century as a result of external and internal political pressures favoring its adoption. The International Monetary Fund, the European Union, and the World Bank have all endorsed deposit insurance. Despite its overwhelming […]

You Try to Provide Shelter for the Homeless and You Get Fined $12,000

A local Maryland church has been fined $12,000 for providing shelter to homeless individuals living in the community. Over the last several years there has been a crackdown on privately funded charitable efforts, with local governments using food and safety concerns-along with zoning codes to penalize those who are trying to help those less fortunate. […]

What is RISK?

While often debated, under Modern Portfolio Theory’s (MPT) purely statistical approach to passive portfolio construction, risk may be defined as “the unexpected variability of returns measured as the coefficient of variation, which is calculated as the standard deviation divided by its mean return.”  Simply put, they typically define risk as the deviation from average performance. […]