stockmarket charts: how safe are index funds, anyway?

Beware of Geeks Bearing Formulas

The history of finance is a history of brains dashed on the pavement. The fact that many people tend to be ‘irrationally’ wary of the markets starts to take on a new significance: the suspicious folk-wisdom has often been correct, while the ‘experts’ have consistently been dangerously wrong.

Hence Warren Buffett’s warning: beware of geeks bearing formulas…

The Matthew Effect: For to everyone who has will more be given, and he will have an abundance. But from the one who has not, even what he has will be taken away.

Meditations on Momentum

What’s the difference between Robert Galbraith and J.K. Rowling? Clearly, being a talented writer is necessary, but not sufficient. Rowling has momentum on her side. At this point, she could publish the contents of a bowl of alphabet soup, and it would still sell better than 99 per cent of novels by hopeful first-time authors.

This is a ‘no duh’ example, designed to get you nodding your head along. But momentum is everywhere, and it’s rarely in plain sight. Without being consciously aware of doing so, I’ve written about it in four domains…

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