Passive vs Active

Both passive and active are here to stay.  The correct answer to which is better? As always is, “It depends.” It depends on what is passive and what is active.  And in the end, people will disagree anyway. An index based on screening for different variables used by...

Dow 30,000, S&P 500 3000?

4/11/16 – We asked for an $18 trillion loan. No one responded. At the time the market PE was approximately 16x current earnings or an E/P earnings yield of 6.25% plus a dividend of 2%. 8/12/16 – The DOW was at 18,473 – 450 times its original value of 40.94 in 1896....

Random Money Basics by CKW: Rate of Growth vs Rate of Return

To obtain a higher Rate of Growth is easier when you have less.  Growing $1,000 by 25% is much easier, less risky, and more certain if you contribute $250 to get to $1,250 rather than trying to find a rate of return of 25%. Growing $1,000,000 by 25% becomes harder if...

Investing Is Art

We humans looking for an investment job need to remember: the computer is quicker, faster, and cheaper at math than we will ever be. Understanding math and using the math to invest the way science proved works is still not art because AI can remember and recognize...

What a client wants

The benchmark is the benchmark. We sold it, had the client immortalize it in writing (IPS) and put a spotlight on it at every quarterly meeting (performance report).  The benchmark is now something to beat (relative, absolute, or adjusted).  The benchmarks humble...