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Using Money To Buy Happiness

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Gareth Cook: What is the biggest misconception people have about the relationship between money and happiness? Michael Norton: One of the things that my coauthor Liz Dunn and I hear again and again when we ask people about money and happiness is a simple phrase: more is better. In general, we all believe that having…

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Thinking Fast And Slow

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Over the years I have noticed some odd similarities between many of the things I do and trading. When I first started in the martial arts I like everyone else thought that there must be some super secret technique and I set out to learn every technique I could. This mythology is actively encouraged by…

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Physics Envy and Economic Theor

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From the videos description – Economists were seduced by physics because it made their claims seem more scientific. Their belief was in the concept of equilibrium, in which it would be impossible to profit from trading around a circle of goods or a circle of currencies without actually producing anything. Of course, that is possible,…

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Returns And Relative Strength

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I came across this chart from Bespoke. When I saw this file in its orignal context it seemed to imply that a higher relative strength equalled a higher return and that there was a sharp distinction between the returns possible as a function of the size of a given instrument. I wasn’t able to recreate…

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I Imagined We Are Supposed To Be Surprised

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There are two reasons not to listen to anything the finance media says. The first is that they have no idea what they are talking about (see earlier piece on gold predictions) The second reason can be found below. Charles Payne, a contributor and frequent guest host for Fox News and Fox Business, was compensated…

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The 8 Worst Gold Price Predictions We’ve Ever Heard

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Business Insider…….While gold prices were on their ascent, we heard some bullish calls from high-profile Wall Streeters that would make dotcom era equity analysts blush. For whatever reason, gold ultra-bulls argued that the precious metal would be worth multiples of where it is today.  We’ve heard targets from $5,000 to $46,000.

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Correlations

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With nothing to do on a cold Melbourne morning other than freeze to death I thought I would dust off this old spreadsheet on correlations.  These are the ASX20 plus the All Ords and the S&P500. Correlations less than 1 are in red and those greater than 0.6 are in blue. Make of it what…

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Weekend Reading

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The Man Who Escaped Microsoft and Took a Whole Company With Him -Wired Men Over 40 Should Think Twice Before Running Triathlons – Bloomberg Shocking new drug testing statistics in tennis revealed – Yahoo The Problem With Psychiatry, the ‘DSM,’ and the Way We Study Mental Illness – Pacific Standard The Last Mystery of the…

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