Return – Perpetual Prudence

Is Correlation Useful?

11/03/202314/03/2023 Haydn Martin 0 Comments Correlation, Return, Shares, Statistical Inference, Stocks

We want to know how independent the returns of assets in our portfolio are. Most people use correlation to measure this. Should they?

Investment Environment

How to Be Comfortable

21/01/202329/01/2023 Haydn Martin 0 Comments Business, Equity, Forecast, Income, Passive Investing, Return, Wealth, Yield

Investing is a great way to generate passive income. But is it the best? And do we really need passive income at all?

Investment Vehicles

Ladder Investing

08/09/202225/10/2022 Haydn Martin 0 Comments Average, Bonds, Buy-and-Hold, Distribution, Government Bonds, History, Life-Cycle Funds, Long-term, Pensions, Return, Shares

What’s the best way to invest inside of a fixed, long-term vehicle? I compare Buy-And-Hold, Life-cycle Funds, and a new approach that I call Ladder Investing.

Investment History

Short Term Capital Mismanagement

29/07/202229/07/2022 Haydn Martin 0 Comments Academia, Active Investing, Complexity, History, Leverage, Return

The LTCM was experiment was a disaster. What can we learn from it? I outline 4 lessons learned from revisiting LTCM.

Investment Philosophy Personal Finance

Don’t Think About Personal Finance in Isolation

24/07/202224/07/2022 Haydn Martin 0 Comments Big picture, Hedge, Long-term, Portfolio Construction, Return

Personal finance is complex. This means that reductionism is dangerous – don’t think of personal finance components in isolation in time or space.

Investment Psychology Investment Vehicles

Why Passive Investing Generates Alpha

04/07/202204/07/2022 Haydn Martin 0 Comments Alpha, Average, Bubbles, CAPM, FOMO, Institutional Investors, Investment Horizon, Long-term, Passive Investing, Retail Investors, Return

Under traditional definitions, passive investors cannot generate alpha by definition. But under a new, more-relevant definition, they can.

Personal Finance

Financial Utopia Without Financial Advisers

10/06/202204/07/2022 Haydn Martin 0 Comments Financial Advice, Financial Advisers, FOMO, Long-term, Principles, Return

In an ideal world, everyone would have a financial adviser. But in reality, that’s not possible. The good news is that most people don’t need one.

Investment Vehicles

I Solved the Passive Investing Debate

16/05/202204/07/2022 Haydn Martin 0 Comments Active Investing, Non-Financial Factors, Passive Investing, Return

Passive investing is still hotly debated. It’s largely a god strategy – it’s quick and easy and it works…if certain conditions hold true. But it has problems.

Personal Finance

Putting Out a FIRE Part I: The Numbers Don’t Add Up

11/04/202204/07/2022 Haydn Martin 0 Comments Average, Distribution, Expectation, FIRE, Return, Wealth

Popular FIRE accumulation and withdrawal are too risky. Simulations tell you that following FIRE religiously can leave you exposed.