Skepticism


Part 2: Evidence Based Investing is Dead.Long Live Evidence Based Investing!

Part 2: Evidence Based Investing is Dead.
Long Live Evidence Based Investing!

Edesess’ case against evidence-based investing rests on three general assertions. There is a very real issue with using a static t-statistic threshold when the number of independent tests becomes very large. Financial research is often conducted with a universe of securities that includes a large number of …

Evidence Based Investing is Dead.Long Live Evidence Based Investing! Part 1

Evidence Based Investing is Dead.
Long Live Evidence Based Investing! Part 1

Michael’s case against evidence based investing rests on three general assertions. First, there is a very real issue with using a static t-statistic threshold when the number of independent tests becomes very large. Second, financial research is often conducted on a universe of securities that includes a large number of …

On the Dangers of Conflating Experience and Expertise

Ben Carlson at A Wealth of Common Sense published an article about how many investors conflate experience and expertise in markets. This is one of the most misunderstood aspects of the investment business, and costs investors billions each year. Carlson quotes Michael Maubisson, who defines expertise as having a model that works. This obviously resonates […]

NO, This Pension Fund is NOT Daytrading Your Retirement Funds, With Up to 500% Leverage

Sometimes, the real story gets sacrificed to the gods of good headlines.  This is an excellent example. I recently came across an an article with the headline “This Pension Fund Is Daytrading Your Retirement Funds, With Up To 500% Leverage.”  It linked through to the article from Pension360 entitled (only slightly less sensationally) “Is This […]

Sigma Sensationalism Syndrome

As bloggers, we certainly understand the compelling motivation to write sensational headlines for posts. But sometimes writers go too far in their quest for clicks. Such was the case not so long ago when and article entitled “Junk Bond Funds Just Experienced A 6-Sigma Event” hit my inbox. The article explores the substantially large outflow […]

86 Years of Lies

Recently, Equius Partners published an interesting piece, which was picked up by The Big Picture.  I’ve posted it in it’s entirety below, but for the moment, we have a few issues that I need to get off our chest.  First, here’s the chart (scroll to page 2): The entire point of the chart is to […]