Business Investing

The Meaning of Risk

A universal definition of risk doesn’t exist. Some of us view risk as negative (what’s my potential downside?) while others view it as positive (what’s my potential upside?). In certain contexts, risk measurement can be very well defined (lending) while in other contexts it’s difficult to measure (investing). As a result of all of this, …

Continue Reading
Investing

T-minus

We’re four days away from Election Day. That’s the best news of all at this point. If this hasn’t been the most drawn out and divisive election of my lifetime I’m not sure which one was more so. While I’ve never ran a marathon before, it feels like we’re getting to the end of a …

Continue Reading
Investing

Volatility

Stock market volatility can appear to be quite complex to most of us. The concept itself at a high level actually isn’t that complicated. Once you attempt to measure volatility, price it and/or trade it is where the complexity arises. In its simplest form, volatility is a measure of the dispersion of returns of a …

Continue Reading
Investing

The Bond Sunset?

Bonds have become less attractive in many corners of the investment markets in 2020 as rates have dropped to historically low levels. As a reminder, bonds can produce returns in two forms: 1) the interest they pay which is a product of the yield or rate they offer and 2) price appreciation. Historically, most investors …

Continue Reading
Investing

Deviating

I briefly discussed the concept of robust investment portfolios in my previous post. I emphasized the importance of having sufficient humility to acknowledge we’re unable to predict the future and to have an imagination that recognizes there are a lot of possible outcomes that we don’t normally and naturally consider. Basically, we need to be …

Continue Reading
Investing

Being Robust

I’ve spent quite a bit of time thinking about the concept of being robust over the past six-plus months, both personally and professionally. Google and other online dictionaries define robust as strong and healthy, vigorous. Additionally, I think of robust as resilient and able to withstand the unexpected, similar to Nassim Taleb’s concept of anti-fragile. …

Continue Reading
Investing

Electioneering

We’re in the two months leading up to what’s sure to be a controversial election no matter who wins. I’m thinking this might be the most controversial election of my lifetime. Even more so than the 2000 election. With the extremists on both sides of the aisle, I get the feeling there’s going to be …

Continue Reading