Weekend Humor
July 2010
Monthly Archive
Sat 31 Jul 2010
Sat 31 Jul 2010
The Reality Of Financial Assets And Financial Markets Is Risk
Posted by Steve Selengut under Personal Finance1 Comment
Most investors incorrectly think of “risk” as the possibility that the market value of a financial asset might fall below the amount that he or she has invested in the asset. OMG, how could this be happening!
Think about it. The harboring of these misconceptions (that lower market price = loss or bad and/or that higher market price = profit or good) is the greatest risk creator of all. It invariably causes inappropriate actions within the large mass of individuals who are uninitiated in the ways of the investment gods.
Risk is the reality of financial assets and financial markets: the current value of all securities will change, from “real” property through time-restrained futures speculations. Anything that is “marketable” is subject to changes in market value. It is as the gods intended, and portfolios can be designed so that it just doesn’t matter quite so much as you’ve been brainwashed into thinking.
What is abnormal is the hype surrounding market value changes and the hysteria such hype causes among investors. No way should a weak real estate market translate into near zero bank balance sheet entries — it just doesn’t compute, except when it is popular politics.
Read (more…)
Mon 26 Jul 2010
Sat 24 Jul 2010
Look For Terrorists And Find Hedge Fund Managers (Comic)
Posted by Robin Bal under Humor[3] Comments
Is there a similarity?
Tue 13 Jul 2010
