Is Correlation Useful?
We want to know how independent the returns of assets in our portfolio are. Most people use correlation to measure this. Should they?
Read moreWe want to know how independent the returns of assets in our portfolio are. Most people use correlation to measure this. Should they?
Read moreThe hype around AI may have left you wondering if this magical technology will solve retail investing so you don’t have to worry about it. Well…
Read moreShould they teach personal finance in schools? No. In this post we explore the reasons why this is a bad idea.
Read moreInvesting is hard – most people know about the basic reasons for this. But they don’t know about the second-level problems that we discuss here.
Read moreOptimisation is stupid. Trying to build the max-return portfolio, taking on debt, and building the “perfect” personal finance structure are foolish endeavours.
Read moreI always see people posting something along the lines of “the market has gone up in a 20-year period 90% of the time”. This drives me insane.
Read moreHere we look at the most popular inflation hedges and their correlation with the general level of prices. We see that none of them work as inflation hedge.
Read moreStatistics is hard. It’s hard to tell what generating function we are dealing with. And this function can change. We must use what we know via deduction.
Read moreDistributions come from one of four types of generating functions. The problem it’s hard to tell what the generator is. This causes all types of problems.
Read moreHow do we know why things happen? Statistics can’t explain. Neither can mathematics. So how do we determine causality?
Read more