Defending Rational Markets

Liberals like to assume markets and individuals are irrational, in agreement with their denial of individual cognitive exceptionalism. After all, if everyone is an irrational blank slate, how can anyone be intrinsically better than anyone else? It’s then not surprising to see Michael Lewis – the inveterate liberal anti-banker journalist – be in favor of… Continue reading Defending Rational Markets

Defending the EMH

Continuing on my first post about the efficient market hypothesis (EMH), I believe in a semi-strong version of the hypothesis, which allows for some opportunities to make profit through a process called fundamental drift. It would seem that the EMH’s biggest opponent are from the ‘right’ of the political spectrum (zerOh3dge and Market Ticker type… Continue reading Defending the EMH

Why There Probably Won’t Be Another Major Financial Crisis in America

TWith Banks ‘Still Too Big to Fail,’ Another Financial Meltdown Looms Yaawn been reading these doom and gloom predictions since 2009 Although the doom & gloom media makes it seem like financial crisis are a common occurrence, there have only been two major crisis (1929 & 2008) in the United Sates over the past 100… Continue reading Why There Probably Won’t Be Another Major Financial Crisis in America

With the Exception of China, Emerging Markets Are Still Awful

From The Reformed Broker: The Circus of What’s Working Now Josh Brown, author of The Reformed Broker, writes: The reality is that foreign stocks and US stocks take turns outperforming each other in roughly four year increments. The last such timeframe where foreign developed equities beat the S&P was from 2003 to 2007. There’s no… Continue reading With the Exception of China, Emerging Markets Are Still Awful

Defending Finance: Why Bankers and Economists Are Not to Blame for the Crisis

From the Economist, What’s wrong with finance There’s nothing wrong with finance or economists, but there is often something wrong when leftists pontificate about finance and economics. In the same way the left dismisses IQ as being useless, the left also dismisses economics as merely being a superstition, akin to reading entrails, or the left… Continue reading Defending Finance: Why Bankers and Economists Are Not to Blame for the Crisis

Smooth Sailing Ahead

For those who already don’t know my opinion, the stock market is going higher – much higher. There are no foreseeable headwinds, no storms clouds brewing. Pretty much all the economic factors that were in place when the bull market began in March 2009 are still here today – albeit with much, much higher prices,… Continue reading Smooth Sailing Ahead

Misconceptions About Algorithmic/High Frequency Trading

TLDR version: Algorithmic trading doesn’t cause market crashes, fear does. The left keeps spreading the myth that high frequency trading/algorithmic trading is responsible for crashes when in fact there are many glaring holes in the anti-HFT argument. If the market were rigged, as the left insists it is, and you knew how it was rigged,… Continue reading Misconceptions About Algorithmic/High Frequency Trading

The New Gilded Age; The Post-2008 Economy, Part 4

The news cycle over the past two weeks can be likened to watching paint dry or glaciers melt. 2013 was the year of congress, the sequester, debt ceiling and shutdowns; 2014 is dominated by sports (Donald Stirling, Ray Rice..stuff like that), police and race conflicts, Russia and the Middle East. The good news is the… Continue reading The New Gilded Age; The Post-2008 Economy, Part 4