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10 Tuesday AM Reads

The Big Picture

My Two-for-Tuesday morning train WFH reads: • Stock Pickers Never Had a Chance Against Hard Math of the Market : In years like this one, when just a few big companies outperform, it’s hard to assemble a winning portfolio. The leading economic indicators show the U.S. 2007-09 Great Financial Crisis 7. 1987 Crash 3.

Insurance 130
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Hold Cash or Invest? History Shows Cash Isn’t King for Long

Darrow Wealth Management

The federal funds rate hasn’t been this high since 2007 when it peaked at 5.25%. Again just using simple math, this presumes the par value will roll over each month and reinvest at the same rate to get to the annual yield. This has been the faster pace of rate hikes since the 1980-1981 cycle. 467% a month.

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Finally, a Stock Market Crash!

Mr. Money Mustache

Which has in turn triggered the more skittish stock investors to run for the exits and completely change their view of our economic future, flooding the financial news with red ink and scary headlines. Now that we’ve covered the background, we can get into some better news: This is all a normal, healthy part of the economic cycle.

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Transcript: Tom Hancock, GMO

The Big Picture

I’d say management consulting is any of the other thing that least at that time was the other career trajectory, just my personality, more of a math oriented introvert. 00:21:26 [Speaker Changed] In isolation quality on average gives you downside protection, certainly did in 2007, eight for example. Learn math, learn history.

Valuation 130
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Transcript: Anat Admati

The Big Picture

ANAT ADMATI, PROFESSOR OF FIANCE AND ECONOMICS, STANFORD GRADUATE SCHOOL OF BUSINESS: So, my journey starts where I took a lot of math. I was good in math and I love the math. So, I was kind of, in my romantic mind when I was in my early 20s, I was going to take but not give back to math, that kind of thing.

Banking 195
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Transcript: Graeme Forster, Orbis Investments

The Big Picture

A degree in mathematics from Oxford, a doctorate in mathematical epidemiology and economics from Cambridge. So I, I did a math degree at Oxford, which is more pure math. You know, pure math can be very theoretical and detached from the real world, and it’s getting worse. You joined in 2007, what led you there?

Investing 130
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The importance of evaluating social factors in mortgage bond analysis

Brown Advisory

The New Normal It is difficult for investors and individuals alike not to have been directly impacted by the rapid rise in inflation in 2021 and 2022, the succeeding interest rate hikes by global central banks and the ensuing effects these economic events have had on financial markets, including the mortgage market.