Tag Archives: Michael Mauboussin

Annual US Market Return Histogram through 2013

It was a remarkable year for the US stock market in 2013 as the S&P 500 Index delivered a total return of 32.39%. As one can see in the attached histogram, it was the market’s best year since 1997. That … Continue reading

Share
Posted in Uncategorized | Tagged , , , , | Leave a comment

The Stock Market: Looking in from the Outside

We are nearly halfway through 2013 and the S&P 500 Total Return Index is on pace to deliver a return of over 47% for the year. In the last 188 years of stock market activity, the market delivered an annual return of … Continue reading

Share
Posted in Uncategorized | Tagged , , , , , , , , , , , | 2 Comments

The Equity Market Annual Return Histogram Updated for 2012

Better late than never. I have updated the equity market annual return histogram for the 16.00% total return generated by the S&P 500 index in 2012. As Michael Mauboussin says, when understanding an investment idea, we should try take an outsider’s … Continue reading

Share
Posted in Uncategorized | Tagged , , , , , , , , , , , , , | Leave a comment

Power Laws at Work in Financial Markets

I am working on a good post for the first “Counterfactual Friday.” Unfortunaltely it will probably not be posted until Monday. In the meantime enjoy the following: I have attached a link to a terrific article on power law distributions and … Continue reading

Share
Posted in Uncategorized | Tagged , , , , , , , , | Leave a comment

Another Disconnect w/r/t the Market

Narrowly focused company analysts are raising performance expectations for the businesses they follow while broadly focused market strategists and economists are lowering their estimates for market performance. One group is going to be wrong. David Dreman and many other value … Continue reading

Share
Posted in Uncategorized | Tagged , , , , , , , , , , | Leave a comment

Father Jude Michael Krill and Behavioral Finance

This may be the only time that I will mix investing with anything to do with religion, but it struck me as appropriate, even consilient. My parish, which is Roman Catholic, has been blessed to have the services of three … Continue reading

Share
Posted in Uncategorized | Tagged , , | Leave a comment