I was reminded about Modern Portfolio Theory yesterday... Late at night when I was climbing the walls.. I've been sleeping in, and it's keeping me up at night... Seems like a feedback loop.
3 day weekend, Right.... I always have to check. There was a day a year ago, that I thought was a bank holiday and the market was open... and maybe it was true... there could be bank holidays that the market is closed.... but I digress...
It was interesting, to look at modern portfolio theory... in the time the return of risk....
Funny On the idiot box they say "When will risk return to markets?" Meaning when will the lemmings run into stocks?... and yet... is that a Return to risk? Not sure if anyone has noticed... but Risk has come back to the market in a Big way... when the stock market is going to boom... it seems like that is... "Lack of risk".
Or something...
It was interesting to go back and look at Modern portfolio theory. and even that It could have If well applied, Saved peoples asses.
I honestly want to read some fiction this weekend... I'm more into classics these days, and I'm not sure if they count as fiction.
I'm in distraction mode... so bare with me... This is the time of year I think about my Garden and yard.... I for some reason thought I should build a Zen Rock garden, this year. I think chances are good I won't do it, but It's fun to think about.
Eh....
I had some rants about how the pay requirements in the Stimulus bill.... were not a bad thing... the thesis being, if these guys are such rocket scientists, maybe forcing them into private business is a good idea. Instead of paying them too much to drive companies into the ground... Maybe they can start business and run them into the ground instead.. Brain drain my ass, how much brain does it take to trick people into 20% credit cards... or can any telemarketer do it?
Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.
J. P. Morgan
Sunday, February 15, 2009
Modern Portfolio theory
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