Risk, volatility and the bear markets (ETF.com)
Lessons from oil crash (Oaktree Capital)
Asset prices are often set to allow of the risks people are aware of. It’s the ones they haven’t thought of that can knock the market for a loop.
The things that will surprise the market won’t be the same one that surprised it the last time (The Big Picture)
Russian economic woe: how it is susceptible to change in oil price (Washington Post)
Is the Chinese economy taking off without us noticing it? (Market Anthropology)
Badly incentivised: how the fee structure put a brake on performance of your investment (The Big Picture)
It is said that if you know your enemies and know yourself, you will not be imperil in a hundred battles… Sun Tzu
Know your enemies. For many investment funds, S&P 500 index is the most popular choice, even though it may not be the most appropriate choice of benchmarks. Over the last 20 years, S&P 500 outperformed average investors by more than 6%. Concretely, by investing in S&P 500 index over 20 years, one should expect a return of 3.2 times the return you would have achieved as an average investor. And that period includes two major recessions and many crashes around the world!
If you have one and a half hour to spare, this interview is worth listening to.
One message stands out:
Don’t be afraid of a recession. They are crucial parts of healthy, ever evolving economy.
From Ritholtz.com: Achuthan is the Co-Founder & Chief Operations Officer of ECRI, managing editor of ECRI’s forecasting publications. He is also a member of Time magazine’s board of economists and the Levy Institute’s Board of Governors. He is the author of Beating the Business Cycle: How to Predict and Profit From Turning Points in the Economy.