I’m a big believer that when someone tells you “It’s different this time” you should subtract their age from 100 to arrive at the probability they’re WRONG. When it comes to investing, experience and a solid knowledge of history is paramount. Markets are cyclical. Fear comes and goes. Exuberance comes and goes. Market crashes WILL … read more

The early 20th century psychologist B.F. Skinner invented a crude, and occasionally cruel, box for measuring the behavior of rats. He discovered and statistically proved that a rat’s behavior was effected by what FOLLOWED a positive or negative reinforcement. Not what preceded the reinforcement. In other words, even rats think about the consequences of their … read more

Regardless of your politics, last night was a historic night for the United States. Good or bad, it has changed the fundamental direction of our country, IMHO.
Our great nation was built on the backs of those who wanted a different–a better–system of government. Rejecting the feudal ways of Europeans, our ancestors set out to a create … read more

I’ve read a number of articles lately about the sizable losses posted by the largest endowments in the country for the year ending June 30, 2009. Yale’s $23 billion fund was down 25%. Harvard lost 27%. Cornell, Penn, and Columbia also suffered. Duh! Of course these massive funds suffered losses – the financial world was … read more

A recent WSJ article revealed the results to a Gallop Poll that asked: “Do you think now is a good time to invest in the financial markets?” In February of 2000 – just before the disastrous dotcom bubble burst in March 2000 – 78% of investors believed it was a good time to invest. Then … read more