Firn,
Good to hear that you are still standing.
Consistently assessing risk properly and reaping the appropriate rewards or paying the appropriate penalties is not an easy business. Investors/clients have very definite expectations; at the end of the day however, it is Capitalism (Mr. Market) that’s powering much of the 7 billion or so of us who are happily consuming food, water, electricity, security, and other ‘public goods’ each and every day.
Fuchs,
If it matters, I use long-term dollar cost averaging into well-diversified, low cost, index funds (equities and bonds) for all my heavy investment lifting. IMHO it reduces risk and increases the chances of a ‘reasonable’ return. As economist would you agree or recommend something else?
For enjoyment I ‘playing/modeling/trading' with equities, however, as a former bill collector for a large international bank (in my pre-degrees days), i am 'religious' about my resultant profits and losses.
Bonds, although they appear simple, are arguably a different level of complexity.
Bill Gross bio by Wikipedia
Gross graduated from Duke University in 1966 with a degree in psychology.[5] At Duke he joined Phi Kappa Psi.[6] He then served in the Navy and earned an MBA from the UCLA Anderson School of Management in 1971. Gross briefly played blackjack professionally in Las Vegas, and has said that he applies many of his gambling methods for spreading risk and calculating odds to his investment decisions. He is also a CFA Charterholder, earning his credentials while working as an investment analyst for Pacific Mutual Life between 1971 and 1976.[7]
Gross manages one of the world's largest mutual funds, focusing mostly on bonds. Called "the nation's most prominent bond investor" by the New York Times,[8] he co-founded Pacific Investment Management (PIMCO) and currently manages PIMCO's Total Return fund (the world's largest bond fund and fifth largest mutual fund) and several smaller ones.[9]
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Gentlemen,
Any thoughts about Japan's recent decision to follow everybody else by taking up quantitative easing/soft money policy? I for one was very surprised when I saw Switzerland take this route, and now Japan. International debt levels are approaching breath-taking levels...
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The toxic distortions of the market resulting from the Greek Kleptocracy and it’s Political Sycophants are disturbing to us all; not least because similar things are in various stages of display throughout the world.
Thinking music: Dire Straits (with Eric Clapton), Live At Knebworth, Money for Nothing on 'the YouTube'
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