Pseudo Random News and Comment

Some Smart Money is Already Exiting the Single Family Rental Landgrab Entirely predictable. Smart money should by definition do smart things. Holding investments in the last bubble for the long-term is at best dead money.

This Is The Housing Bubble Beneath The “Recovery” Speculative participation as high as the bubble peak.

Net Wealth Shock and Portfolio Diversification The benefits of not putting all of your eggs in one basket…..but don’t expect too much – Why diversification doesn’t work  (via AR)  The professor himself has a laughable idea that by anticipating diversification breakdown investors can redeploy assets to avoid disaster. But to do so they have to sell their stocks, which, if at all widely implemented, will cause a crash (it’s advocating something nearly identical to the portfolio insurance religion of 1987). To the extent TAA models use similar methodology they will have a similar result in a crisis too. Oops.

Rabobank Quits Pro Cycling No doubt the first of a number of sponsors to take the off ramp.

Thomas Jefferson Was Not a Monster Even if the scholarship of the book were good, he only proves that holding slaves was a poor investment. Over 1000 years, interest rates, whether short-term or long, have averaged about 6%, so making 4% on a farm with slaves is a poor use of funds. It also says nothing about how much more work they would do if they were paid.

Who wins in an ETF price war? You get to win one for a change.

So How Predictable Was 1987? Hindsight always works wonder, but there were a number of signs that something wasn’t right. For one, my dad lightened up a lot.


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