MyMoneyBlog recently had a post on dollar cost averaging. In this post there is a reference to a paper by Knight and Mandell, the conclusion of which is that dollar cost averaging is not worth the additional effort over buy-and-hold investing or periodic rebalancing. As a brief review, dollar cost averaging is a method of … Read more
As in rubber-meets-the-road, stuff’s-gonna-hit-the-fan cynicism? As in every last bit of personal finance advice you’ve learned reading this blog, reading other blogs, reading financial magazines, and listening to your grandmother has gone out the window? As in: Your dollars become worthless. The dollar purchases only 4% of what it did in 1913. I don’t see … Read more
How’s THAT for a title to a post! My wife has become quite a proficient crocheter. When I looked over, she was rolling a ball of yarn. On the other end of the yarn, though, was a circular piece she had crocheted to about a foot in diameter that was now being unraveled. Me: “That … Read more
Crowds know a lot collectively. The basis for efficient market theory is that everything known about the market, good and bad, is already priced into it, so that its price is exactly where it should be, supposedly. This works only if you have a large number of people making a judgment as to where the … Read more
As I go out on a limb and write posts about the evils of consumer debt and borrowing to invest, I get comments on these posts that provoke a lot of thought. Like this one excerpted from Enough Wealth’s comment regarding my aversion to debt: [Borrowing against existing net worth to invest in additional assets] … Read more
Wow. The response to my posts on Douglas Andrew’s Missed Fortune 101 continues to be lively. Just got a comment about it through e-mail today, in fact. This discussion has taken on a life of its own in some ways. On the main post people’s opinions of my comments have been everything from being a … Read more
A friend I used to work with got me involved in some free newsletters related to business, finance, and investing. This model of publishing — a highly successful one, by the way — is designed around sending free, high-quality commentary in newsletter form and peppering the newsletter with ads for paid newsletters, related programs, cross-promotions, … Read more
Oh boy — silver blew through $14 an ounce today and almost hit $15 before retreating a little. It hit $10 only six weeks ago! Gold still doesn’t seem to be getting much respect, but it’s above $630/ounce now. Silver’s getting even less, apparently. How high does it have to go before it gets some … Read more