Rebalancing, Explained

Rebalancing, Explained

By The Banker | Ask an Ex-Banker, Blog Posts, How Not To Invest, Investing, Texas

Editor’s Note: A version of this post appeared today in the San Antonio Express News: A former student at Trinity sent me a Facebook message recently. He linked to an advertisement message for an investment advisory company that emphasized the importance of ‘rebalancing’ one’s investment portfolio every quarter or every year. I realized I had [&hellip

Mortgage Lending Made Easy Makes Me Uneasy

Mortgage Lending Made Easy Makes Me Uneasy

By The Banker | Blog Posts, Wall Street

Yesterday was a pretty big day in the slow unwinding of post-crisis mortgage-lending policy making, according to the Wall Street Journal. I’m not going to jump up and down and declare that this latest negotiated relaxation of federal mortgage standards means we’re back to the pre-Crisis madness. On the other hand, it appears that all [&hellip

More On Actively Managed Equity Mutual Funds

More On Actively Managed Equity Mutual Funds

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Lately I’ve taken to saying boldly and loudly to anyone who asks my opinion (and some who don’t!) that every academic study ever done on actively managed (high cost) mutual funds vs. passively managed index (low cost) mutual funds shows that, in aggregate, the actively managed funds under-perform the passively managed funds by approximately the [&hellip

Volatility in Stocks - That's a Good Thing

Volatility in Stocks – That’s a Good Thing

By The Banker | Blog Posts, Texas

A version of this post ran in the San Antonio Express News today. The U.S. stock market got quite volatile last week, and I couldn’t be happier. Let me explain why, by way of the analogy of the 2011 fire at Lost Pines State Park. Scorched earth and equity markets Two weeks ago, I drove [&hellip

This US History Sounds Marxist, And Also Basically True

This US History Sounds Marxist, And Also Basically True

By The Banker | Blog Posts, Inequality

Can something be basically Marxist and also basically true? Of course my answer is yes, because Marxism as a tool for analysis can sometimes be summed up as a ‘Follow The Money.’ As an economic and political system Marxism has – so far – been as awful a system as we humans can manage to [&hellip