A long running theme here at Risk and Return has been the inappropriate levels of risk our financial institutions run and our frustration with the bailing out of institutions because they are “too big to fail.” Whether in truth those institutions were too big to fail or not, the very fact that they are...
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We finally got a mixed bag on the employment front this month, a welcome change from the purely awful. However, with everyone focused on “creating” jobs I think this quick synopsis attacking the unrealistic expectations of when and where jobs will come from is well worth reading. This chart gives you an idea of...
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I am often asked about individual bank stocks, especially JP Morgan. Generally my answer is that Bank of America, JP Morgan and a few others look to be likely survivors, but how profitable they will be I am really unsure. JP Morgan is a special discussion, because I point out a rather astonishing fact,...
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One of my favorite people to read is Rob Arnott, who never ceases to examine every truism, shibboleth and academic orthodoxy in the field of finance. What are alpha and beta? Why and when is it important to distinguish between them. All About Alpha reviewed some of his points a little over a year...
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To start off James Hamilton reviews last weeks depressing economic data, and its effect on the stock market. Which leads to the next question. Trying to get defensive? The Wall Street Journal notices some of the same things we have been talking about that make it difficult, while the New York Times picks up...
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