Research Roundup: Stock Crashes, Damodaran Interview, Financial Superpowers, Rising Rates, and Tariffs
Here are the best things I read this week, their main takeaways, and the most important chart from each piece:
Small Portfolio Changes Don’t Matter
The investment product landscape is like the supplement industry. Supplement companies don’t make money if you sleep eight hours a night, only drink water, and avoid junk food. Fund providers don’t make money if you stick to low-cost index funds. We’re inundated with products promising an edge, either for our health or finances. In investing,…
Book Summary of Superforecasting
Jazon Zweig said Superforecasting by Philip Tetlock and Dan Gardner is “the most important book on decision making since Kahneman’s Thinking, Fast and Slow”. Tetlock co-created The Good Judgement Project (GJP) which participated in a forecasting tournament held by IARPA, a U.S. government organization. IARPA supports research that has the potential to revolutionize intelligence analysis.…
Research Roundup: Serial Bond Defaulters, Explaining the EM & USD Link, and Data on Tax Loss Harvesting Benefits
Here are the best things I read this week, their main takeaways, and the most important chart from each piece:
The True Cost of Hedging S&P Downside
Hedging sounds like a smart thing to do. But has it actually worked? This post examines the historical costs and benefits of hedging stock exposure with SPY puts.