Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.
This week kicked off with the Nobel Prize in Economics being award to three economists, Fama, Shiller, and Hansen, each with differing views on market theory. This Bloomberg article sums up best what each has brought to the efficient market table.
The Efficient Market theory has been a hotly debated topic for several decades now. It’s a topic I’ve avoided since I simple don’t believe the stock market is efficient all the time. It’s closer to most of the time.
Academia is starting to find the reasons behind that. Of course, value investors have preached this forever. Rather than study it, they chose to take advantage of it.
As expected a debt deal was done at the last minute. We won’t have to deal with this again until Feb 7th. That’s February 7, 2014, four months from now. You can really see the long-term vision with this new plan. Can kicking is officially an art form. Enjoy it while it lasts.
- The Inefficiency of the Market Isn’t an Open Question – more info on the efficient market debate.
- When the Financial Past Is Not Prologue – why sticking to the plan is better than focusing on what’s happening (or not happening) now.
- Is Diversification Dead? Not by a Long Shot – diversification still matters, even when everything is going up.
- 8 Questions About the Debt Ceiling Deal You Should Know How to Answer – in case you have any questions.
- Chipmunk’s Plan For Future Better Crafted Than That Of 8 Out Of 10 Americans – because its funny and somewhat true.