I have said it before and will say it again, FDR was wrong. It is not that the only thing we have to fear is fear itself, the only thing we have to fear is no fear at all.
Tag: Uncertainty
On
01.23.09 • In
Emotions & Decisions • by
DKS •
With apologies for being out of touch, I would like to make a couple of notes on psych cap. First, and I have said this before in different way, it really does appear that our brains have special “curcuits” for detecting imprecision or uncertainty. In other words, that feeling that someone or something is there [...]
Someone named Robert Skidlesky wrote a book called John Maynard Keynes: 1883-1946: Economist, Philosopher, Statesman. He says that Keynes said “not all future events could be reduced to measurable risk. There was a residue of genuine uncertainty and this made disaster an ever-present possibility, not a once-in-a-lifetime ‘shock’. Investment was more an act of faith [...]
Portfolio selection: Let’s exhume the buried man! In his milestone paper “Portfolio Selection” published in the Journal of Finance in 1952, Harry Markowitz, the pioneer of “modern finance,” recommends to use the Expected return-Variance (E-V) rule, both as a working hypothesis to explain investment behavior and as a guide to “investment” – as distinguished from [...]