“Active Money Manager Model Is No Longer Viable”

Jim Bianco, one of my favorite market analysts/researchers, points out that the “active money manager model is no longer viable.” He explains: “The chart [below] shows flows into passive ETFs (red) and active mutual funds (blue). Highlighted on the chart is the depth of the financial crisis, September 2008. This appears to be the inflection… Read More The post “Active Money Manager Model Is No Longer Viable” appeared first on The Big Picture.

10 Friday AM Reads

My end of week morning train reads: •  ‘Stories’ was Instagram’s smartest move yet (Record) • “What Have We Done?”: Silicon Valley Engineers Fear They’ve Created a Monster (Vanity Fair) see also What Silicon Valley still gets wrong about innovation (Venturebeat) • Forget Old Glory — Why Betsy DeVos’s Family Yacht and Others Fly Foreign Flags (Capital and Main)… Read More The post 10 Friday AM Reads appeared first on The Big Picture.

2019 Ford Mustang Bullitt

Ford is now less a car maker than a truck manufacturer. One of the few cars they still do make is the iconic Mustang. Just in time for the 50th anniversary of the movie “Bullitt,” which contains one of the all time great car chase scenes — comes the anniversary Bullitt edition Mustang. The 480 horsepower,… Read More The post 2019 Ford Mustang Bullitt appeared first on The Big Picture.

Thaler + AQR: Silly Things Investors Do

AQR, the giant quant hedge fund and home of geek/raconteur/super hero Cliff Asness has rolled out a new podcast called “The Curious Investor.” Here is Episode 1: “Silly Things Investors Do,” features interviews with renowned behavioral economists Richard Thaler and Nick Barberis and walks listeners through some of the most common biases that creep into… Read More The post Thaler + AQR: Silly Things Investors Do appeared first on The Big Picture.

Bloomberg: A Challenge to the Biggest Idea in Behavioral Finance

A Challenge to the Biggest Idea in Behavioral Finance Two professors make an interesting argument, but the theory of loss aversion isn’t dead yet. Bloomberg, August 9, 2018         Yesterday, I referenced a fascinating discussion at Scientific American about Loss Aversion. [i] Today, my column on this is out at Bloomberg. As I noted,… Read More The post Bloomberg: A Challenge to the Biggest Idea in Behavioral Finance appeared first on The Big Picture.

10 Thursday AM Reads

My morning train reads: • Fidelity’s Free Funds and the Changing Brokerage Business (Morningstar) • When to Pick a Mutual Fund Over Its ETF Version? (Wall Street Journal) see also What Is My Mutual Fund’s ‘Active Share’? (Wall Street Journal) • “Big Four” accountancy firms, mired in scandals, are so bad at auditing they’ve become a danger to capitalism (Financial… Read More The post 10 Thursday AM Reads appeared first on The Big Picture.

Is Loss Aversion a Fallacy? 

There is a fascinating discussion in Scientific American: “Why the Most Important Idea in Behavioral Decision-Making Is a Fallacy.” It is based on a paper in the Journal of Consumer Psychology written by David Gal, University of Illinois at Chicago and Derek D. Rucker Northwestern University (and a subsequent defense of that paper).[i] Gal writes… Read More The post Is Loss Aversion a Fallacy?  appeared first on The Big Picture.

10 Wednesday AM Reads

My midweek morning train reads: • Your Fees Are Bull%$&* (Institutional Investor) • Quant Hedge Funds Trail Old-School Ones, But Reap All the New Money (Chief Investment Officer) • The Ultra-Pure, Super-Secret Sand That Makes Your Phone Possible (Wired) • Australia’s China reset (The Monthly) • New Poll: 43% of Republicans Want to Give Trump the Power to Shut Down Media (Daily… Read More The post 10 Wednesday AM Reads appeared first on The Big Picture.

Gig Economy is Shrinking

Torsten Sløk was our MIB guest this week; here is a recent chart of his worth sharing: Source: Torsten Sløk, Ph.D., Deutsche Bank Research Sløk: In the BLS employment data an Uber driver is a contingent worker. The definition of a contingent worker is someone who doesn’t have an implicit or explicit contract for ongoing… Read More The post Gig Economy is Shrinking appeared first on The Big Picture.

MIB: How Torsten Sløk Makes Boring Economics Interesting

How can you make different and more interesting charts than is typical of ordinary Wall Street economists? That was the challenge confronting Torsten Sløk, Chief International Economist at Deutsche Bank Securities. The solution came to Mr. Slok via his worked at the OECD in Paris and at the IMF in Washington. Working with data analysts… Read More The post MIB: How Torsten Sløk Makes Boring Economics Interesting appeared first on The Big Picture.

10 Tuesday AM Reads

My Two-for-Tuesday morning train reads: • Apple Kicked Alex Jones Off Its Platform, Then YouTube And Facebook Rushed To Do The Same (Buzzfeed) see also The Lasting Trauma of Alex Jones’s Lies (The Atlantic) • How Econ Numbers Can Lead You (and Me) Astray (Bloomberg View) see also When Economic History Improves With Time (Project Syndicate) • How ‘hackers, founders, and… Read More The post 10 Tuesday AM Reads appeared first on The Big Picture.

Low inflation and rising global debt: just a coincidence?

Article by Mr Claudio Borio, Head of the Monetary and Economic Department of the BIS, for the 70th anniversary of Zeitschrift für das gesamte Kreditwesen, published on 1 August 2018. ~~~ At first sight, they seem unrelated. After all, why should low inflation and rising debt be linked? True, from the early 1980s inflation declined, and then stayed… Read More The post Low inflation and rising global debt: just a coincidence? appeared first on The Big Picture.

Marketplace: What do we do about Elon Musk?

There is a very interesting discussion on Marketplace about Elon Musk: “In some ways, Elon Musk is made for our times. He’s a fiercely polarizing billionaire who’s positioned himself as a singular visionary, capable of remaking the auto industry and revolutionizing space travel while building rescue submarines on the side. He knows his way around a Twitter fight,… Read More The post Marketplace: What do we do about Elon Musk? appeared first on The Big Picture.

Bloomberg: Uber Is Blamed for the Mistakes of New York’s Leaders

Uber Is Blamed for the Mistakes of New York’s Leaders Failing to understand market forces will make matters worse. Bloomberg, August 6, 2018     Can’t I leave the city for a long weekend without you people screwing everything up? I thought I explained all of this back in May of this year (How Taxi… Read More The post Bloomberg: Uber Is Blamed for the Mistakes of New York’s Leaders appeared first on The Big Picture.