Invest Skeptically

Know what you’re buying and invest skeptically.

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Entries Tagged as 'Asset Allocation'

Two examples of the Law of Unintended Consequences seen in U.S. renewable energy policy

July 12th, 2007 · No Comments

Today’s entry is a bit experimental and so I’d appreciate any feedback you may have.
I’ve been reading lately of a number of interconnected issues and I wanted to try and fit them together in a simple picture. As such, I’ve put together a diagram of the interconnectedness between U.S. biofuel subsidies and inflation in [...]

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Tags: Asset Allocation · Current Events · Strategy

More than one kind of index: Market Capitalization vs. Fundamental

July 10th, 2007 · 2 Comments

The most familiar indices, such as the S&P 500, are typically weighted by market capitalization (a notable exception being the DJIA which is an arithmetic average price). This means that larger companies like 3M get a proportionally larger weighting than smaller stocks like Paychex (just picked two companies at random). Market cap indices are [...]

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Tags: Asset Allocation · ETFs · Indices & Benchmarks · Strategy