Tags » Volatility

With GDP growing and incomes catching up with inflation all is well - or is it?

The headlines would have us believe things are now going well but the underlying trends in our economy, which would lead to us having a “viable” economy – one with social, economic justice and environmental sustainability leading to human well being, are all in reverse. 2,253 more words


How to Invest in the Age of Deflation (and High Volatility)

We are convinced that, after the long bull market run, we are now entering a new phase where volatility is going to remain a principal feature and where returns are going to remain suppressed for a long time.  513 more words


Round 3: winning the mental battle against volatility using managed futures

In the previous posts (here and here) I have illustrated a couple approaches to one of the most dangerous parts of personal investing: the mental anguish caused by volatile (equity) markets.   605 more words

Thoughts on management of volatility in a portfolio

We recently received a query from one of our clients regarding management of volatility in a portfolio. Many are of the opinion that timing the market by way of constantly switching between equity and debt depending on market fluctuations may be the best way to counter volatility. 513 more words


Trading The Odds Volatility Risk Premium: Addressing Data Mining and Curve-Fitting

Several readers, upon seeing the risk and return ratio along with other statistics in the previous post stated that the result may have been the result of data mining/over-optimization/curve-fitting/overfitting, or otherwise bad practice of creating an amazing equity curve whose performance will decay out of sample. 1,684 more words


Humans are Path Dependent

Economic orthodoxy assumes that human beings are rational on average. Models fail to account for basic human psychology, such as rational regret. Another staple of human existence is path-dependence, which is best illustrated in an example: 367 more words

Stock Market

Round 2: winning the mental battle against volatility using....volatility.

Last post addressed one way to deal with the mental anguish provided by market volatility: the ostrich method.  It’s a simple method, albeit not particularly sophisticated.   715 more words