The Normal

Stocks Are Risky – This is Not the New Normal, It is The Normal Today, the Dow Jones Industrial Average (DJIA) dropped more than 800 points, which was a little more than 3%. It didn’t make any investor that I know feel good, but was this “The Normal?” Yes, this is a reference to “The … More The Normal

Disconnected or Connected?

If you look up the definition of “disconnected,” you will find the word “incoherent” among its synonyms. Being “disconnected” sounds negative and, in fact, people are often ridiculed for not being “connected.” In keeping with the title of my website blog, I’m posting this provoking question. Are we more coherent when we are disconnected? I … More Disconnected or Connected?

Stop It

The title of this piece comes from a recent Josh Brown article titled, Delusions and Entitlement (he deserves full credit for this quip). In his post, Josh said the following: “There’s this idea floating around out in the ether that, for some reason, public equity markets are expensive but private market valuations will serve as an … More Stop It

Fake News?

Are some investors placing votes in favor of private equity based on fake news? According to a recent McKinsey & Company Global Private Equity Review, in 2017 private investment managers raised a record sum of nearly $750 billion globally. A few factors are driving this, but one is the strong belief that private investments have … More Fake News?

Pavlov’s Brokers

Recently, I noticed a Tweet from Josh Brown (like me, a Reformed Broker) and a follow-on note from Dan Egan, who I had the pleasure of working with in the past at a brokerage firm (maybe he should be called the Reformed Behaviorist). Both focused on how incentives and stimuli can influence investor behavior. It … More Pavlov’s Brokers

Don’t Let Your Portfolio Get Sacked – Version LII

Are you ready for the big game? The poised Boston champion Pats vs. City of Brotherly Love, Rocky-like underdog Eagles. Beyond the entertainment of the Super Bowl, the NFL runs a business that generates exceptional returns. If marketing is your game, you could do a lot worse than to follow the lead of the NFL. … More Don’t Let Your Portfolio Get Sacked – Version LII

Why I Don’t Make Forecasts

“A spectacular zero” and advice from Janet Yellen At the end of this post, I’ll explain the picture above and the advice Janet Yellen gave me.  To start, though, most people know that I run an investment advisory firm and that, in the past, I held senior positions inside large Wall Street firms, giving advice … More Why I Don’t Make Forecasts

To Think Better – Goof Off and Go For A Walk

Walking makes you think better and goofing off is good for you. And no, I’m not being goofy. Classical Greek philosophers understood well the benefit of a break.  Aristotle’s school of thought is called Peripatetic, which means “walking” or “given to walk about”, and members of his school were thought to do their best thinking … More To Think Better – Goof Off and Go For A Walk

Would Hedge Fund Investors Be Wise To Remember The Sage Wisdom of Monty Python?

Beware of Hedge Fund Holy Grail Quests and Their “Shadow” Costs  A lot has been written about hedge fund fees and their relatively poor performance (click here for the latest from Warren Buffett), but not much has been written about other “shadow” costs of adding what are often pitched as holy grail like risk reducing … More Would Hedge Fund Investors Be Wise To Remember The Sage Wisdom of Monty Python?

Don’t Let Your Portfolio Get Sacked

Are you ready for the big game? Super Bowl 50. The seasoned star, Peyton Manning, in what could be his final game, versus the new star, Cam Newton. The only improvement from my New England perspective would be watching our Patriots this Sunday, but I am sure I will enjoy the excitment on the field … More Don’t Let Your Portfolio Get Sacked