Mandelbrot and the Misbehavior of Markets

Chaos Theory and Investing

Mandelbrot and the Misbehavior of Markets   Stock market returns are not just random—they are randomly random. That is, the returns of the market are stochastic. While I love the word stochastic, it and Chaos Theory are not well understood […]

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risk tolerance and asset allocation

Risk Tolerance and Asset Allocation

How Risk Tolerance affects Asset Allocation  Asset allocation—how you balance the stocks and bonds in your portfolio—is the most important decision an investor makes. This is not overstated! Asset allocation depends on your risk tolerance and age. Risk tolerance is […]

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Behavioral Investing For the DIY investor

Behavioral Investing For the DIY investor

Can a DIY Investor use Behavioral Investing to Meet Long-Term Goals?   Behavioral investing is style of investing that stems from an age-old battle in investment theory. The basic question: are investors mostly rational or irrational? If they are irrational, […]

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advice-only financial planners

Advice-Only Financial Planners

What Is Advice-Only Financial Planning? Financial literacy is not taught in our schools. Money is not mentioned around the dinner table. Yet, Wall Street obfuscates investing and “financial advisors” hide fees and commissions. The solution? Advice-Only Financial Planners. Dave Ramsey […]

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