Search found 11 matches

by trago12
Wed Dec 20, 2017 11:36 am
Forum: Investing - Theory, News & General
Topic: Are Size, Value and Momentum just extra risk you are compensated for?
Replies: 4
Views: 625

Re: Are Size, Value and Momentum just extra risk you are compensated for?

https://youtu.be/dj-RO4mh-wA?t=27m30s

time stamped video of Fama, talking about a funds performance by tilting towards Value - that they are just taking on more risk and markets are still efficient
by trago12
Wed Dec 20, 2017 11:27 am
Forum: Investing - Theory, News & General
Topic: Are Size, Value and Momentum just extra risk you are compensated for?
Replies: 4
Views: 625

Are Size, Value and Momentum just extra risk you are compensated for?

Any good information sources on Fama French factor interpretations? Fama French model extended CAPM by adding: Size, value and momentum factors in their original model (now there are 2 other potentials that they have put forward). Fama to my knowledge says that these factors should be interpreted as...
by trago12
Sun Dec 10, 2017 10:05 am
Forum: Investing - Theory, News & General
Topic: An argument for investing in bitcoin
Replies: 10
Views: 795

Re: An argument for investing in bitcoin

Wouldn't this just be speculation? Similar to precious metals, pork bellies, and the like? Maybe a step beyond, close to gambling? I guess if speculation and/or gambling has a role in your portfolio for some reason, then maybe? Part of my point is that we might be to adverse to things that could be...
by trago12
Sun Dec 10, 2017 8:55 am
Forum: Investing - Theory, News & General
Topic: An argument for investing in bitcoin
Replies: 10
Views: 795

Re: An argument for investing in bitcoin

But there might be more investments such as bitcoin that we could add to our portfolios that offer a higher expected return loss for given variance/risk. We cannot predict the future, but we can look at the past. Where were you in 1999 when folks were buying Global Crossing, Corning Glass, Worldcom...
by trago12
Sun Dec 10, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: An argument for investing in bitcoin
Replies: 10
Views: 795

Re: An argument for investing in bitcoin

Wouldn't this just be speculation? Similar to precious metals, pork bellies, and the like? Maybe a step beyond, close to gambling? I guess if speculation and/or gambling has a role in your portfolio for some reason, then maybe? Part of my point is that we might be to adverse to things that could be...
by trago12
Sun Dec 10, 2017 8:32 am
Forum: Investing - Theory, News & General
Topic: An argument for investing in bitcoin
Replies: 10
Views: 795

An argument for investing in bitcoin

Firstly, I would only be suggesting a small part of a portfolio could be justifiably put into bitcoin (like less than 5%). But, one of the great advantages that I think lots of us may be missing out on is very risky individual investments which are uncorrelated with the rest of our portfolio. I thin...
by trago12
Sun Dec 10, 2017 8:03 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Malkiel saying a world index maybe underweight countries like China?
Replies: 20
Views: 1528

Re: Thoughts on Malkiel saying a world index maybe underweight countries like China?

The theory behind index investing is based on many assumptions, most unrealistic but possibly accurate enough to be useful. The theory concerns the special properties of "the market portfolio," which consists of the total set of assets actually held in a market, whatever a market is. I don't know t...
by trago12
Thu Dec 07, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Malkiel saying a world index maybe underweight countries like China?
Replies: 20
Views: 1528

Re: Thoughts on Malkiel saying a world index maybe underweight countries like China?

For instance, in Vanguard Total World Stock ETF China represents 2.6%, whereas its GDP as a percentage of world GDP is around 15%. So Malkiel suggest bulking up more on a country like China. What are people's thoughts on this? It's worth noting that, while China may not yet make up a large percenta...
by trago12
Thu Dec 07, 2017 12:19 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Malkiel saying a world index maybe underweight countries like China?
Replies: 20
Views: 1528

Re: Thoughts on Malkiel saying a world index maybe underweight countries like China?

To follow on the points made by nisiprius We presume that the market portfolio reflects consensus pricing of the assets that are in the portfolio. We assume that all assets in the market and therefore the assets in the market with home in any particular country, are efficiently priced. But that ass...
by trago12
Thu Dec 07, 2017 10:02 am
Forum: Investing - Theory, News & General
Topic: When Bitcoin blows-up
Replies: 55
Views: 5257

Re: When Bitcoin blows-up

what sort of spill over effects are you envisaging?
by trago12
Thu Dec 07, 2017 9:19 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Malkiel saying a world index maybe underweight countries like China?
Replies: 20
Views: 1528

Thoughts on Malkiel saying a world index maybe underweight countries like China?

Most indices to my knowledge are based on free float market capitalisation. Malkiel argues that this means China and other countries like it might be underweight, (arguing this on must recent version of Random Walk Down Wall St., and also in the google talk he gave : time stamped https://youtu.be/wn...