Nassim Nicholas Taleb is a well-known scholar of mathematical finance. Taleb teaches risk engineering at New York University. He is also the author of a major best-selling book: The Black Swan. In the world of personal finance, a “black swan event” is a massive change in investment conditions which is either predictable or unpredictable. Either [...] Read more »
Archive for the ‘Stock market investing’ Category
Rethinking the Risk of Stocks
TuesdayJun 8,2010
The mainstream investing media may finally be getting it. A recent “Ask the Expert” article from Money Magazine tells us that we should “rethink” the risks of investing in stocks. Well, duh! What is significant about this particular article is that it cites actual research to support the author’s premise: After a 75% surge from [...] Read more »
The Truth About Stocks Aftermath
WednesdayOct 14,2009
I received my November issue of Money Magazine today. I was curious about any reader reaction to last month’s interview with Zvi Bodie which the magazine titled “You Can’t Handle the Truth About Stocks.” The editors printed two reader letters responding to the interview. One had this to say: I wish more people had the [...] Read more »
Avoiding the Retirement Postponement Strategy
SaturdaySep 26,2009
A standard retirement planning recommendation heard these days from financial advisers is to postpone your retirement and work longer. Who wants to hear that? That “strategy” is almost as bad as unretirement. The folks who are telling you to delay your retirement are the same “experts” who put you in high risk investments to begin [...] Read more »
Stock Picking Can Ruin Your Retirement Plan
SundaySep 20,2009
Many stock brokers, financial planners, and even DIY investors believe that picking individual stocks is the key to avoiding massive portfolio losses as experienced in 2008 and early 2009. That’s a variation on the theme that managed funds are superior to indexed funds. There is abundant evidence that disproves that notion. Even the experts are [...] Read more »
The Truth About Stocks and Retirement
ThursdaySep 17,2009
What an interesting coincidence that in the same week that I launch the FAILSAFE RETIREMENT™ System, Zvi Bodie is interviewed in Money Magazine. In an article entitled “You Can’t Handle the Truth About Stocks”, Prof Bodie makes the case once again that the risks inherent in equity investing do not decline over time. He sums it [...] Read more »