Dedicated to all things economic and financial.

Friday, November 14, 2008

Interesting Articles for Those on a Financial Learning Curve:
  1. O.C. Register, MarketPlace, Sunday November 9, 2008 on 'Mutual funds face a vicious cycle. Need to raise cash limits ability to capitalize on market bargains. By Gail Marks Jarvis'. "At its worst case, depending on the liquidity of holdings in the protfolio, redemptions can trigger a vicious cycle that can really drive down a fund's value," Dolan said.
  2. The Wall Street Journal Opinion Journal linked to this blog site on November 12, 2008 on 'Is Now the Time to buy Stocks? Here is what the historical evidence suggests. By John H. Cochrane'. "The standard portfolio rule says that your stock percentage should rise with the expected return (stocks and bonds) divided by squared return volatility." "Many sophisticated investors and hedge funds who use this standard formula are getting out, waiting for at least a return of lower volatility before getting back in."

No comments: