Your Biases Cost You — A Lot!

One of the reasons we moved from the academic world to the investment world was the potential for profiting from widely-held misperceptions.  Such situations abound in the current political and market environment.  Investors who understand this can have a field day. Background In the study of economics, political science, and public policy formation there is […]

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Prospects for Banks and Financials

Readers of "A Dash" know that for the last year we have been contributing to RealMoney, a subscription service from TheStreet.com (free trial available).  Before contributing, we subscribed for many years, finding the site to be a useful source of ideas and discussion. One of the most helpful contributors is Bob Marcin, founder and General […]

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If you cannot pass this investment test, turn over the car keys

Here is a key question for investors and traders alike:  Do you want to be entertained by the colorful opinions of bloggers about what government should do or would you rather profit by understanding what they will do. Background We have highlighted the distinction between normative and empirical analysis — opinions about what ought to […]

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Bear Stearns Bailout Implications

Everyone needs some time away, but those of us in the investment world never really get it.  Managing money carries with it the responsibility of monitoring information and staying in touch, no matter how talented the team on the front line. We are talking with a lot of individual investors.  The doom and gloom is […]

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Sentiment and Reality

At "A Dash" we do not indulge in the very short-term market calls.  It is a popular thing to do, and someone has always made a spectacular prediction. Our problem with these methods is that they are not testable.  Someone is always right, but how should one evaluate the overall record? Friday’s Trading On Friday […]

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