I have struggled to answer some basic contradictions in our economy. On the one hand, we have printed, spent, and…
The Magebook
Five Factors Across the Business Cycle
Probably the most popular models in modern investment management are factor models. Growing out of the Capital Asset Pricing Model…
On Horses, Tractors, and Markets
Growing up on a cattle ranch in central Texas, I developed a certain respect for the tools of the trade.…
Recession Forecasting with a Neural Net in R
I spend quite a bit of time at work trying to understand where we are in the business cycle. That…
How to Optimize a Goal-Based Portfolio
Traditional portfolio optimization (often called modern portfolio theory, or mean-variance optimization) balances expected portfolio return with expected portfolio variance. You…
Why You Should Be a Goals-Based Investor
Imagine for a moment that you owe a violent loan shark $10,000 by tomorrow morning. But today you have only…
How Much Can You Lose Before You’ve Lost Too Much?
I started my career in finance in 2007. For about a year I thought “this is great!” Then 2008 hit…
Labor Force Growth by Decade – R Code
I just posted an interesting look at the growth of the labor force by decade. Given that I used R…
Optimizing a portfolio in R – Monte Carlo method
I regularly use monte carlo engines to answer questions. First, they are really flexible in their ability to model non-normal…
A Professional Investor’s Take on the Naivete of American Compass
As a professional money manager working in public markets, I love watching how we are portrayed in popular culture. Sometimes we…
