Calendar Archive

Recent Tweets

Follow capflowwatch on Twitter
Page 1 of 6123456
Post Modern Security Analysis

Is security analysis a science?

Predicting the future is often not scientific.

A pretense of scientific basis has weakened the usefulness of security analysis in the modern era. Fancy mathematics serve to cloud the minds of investors.

The collapse of Long Term Capital Management and the Crash of 2008 were assisted by the injection of ‘junk science’ into investment decisions.

Can (or should) security analysis be considered ’scientific’?

The investment profession:

A securities analyst’s greatest challenge

Lack of dedication has long been the bane of the security analyst.

The Crash of 2008 raised questions as to the competence of many who work in the profession of security analysis. There are dozens of schools providing professionals with training and certification in this field. However, know-how is not enough.

Commonsense and hard work can be more important than theoretical training and the ability to use the terminology.

This article discusses an endemic problem: Laziness.

After the Crash

The Economist trashes modern economics

Follow the horsemen

The financial crisis of 2008 caused many to suspect that something is wrong with ‘Modern Economic Theory’. That economists are not, in fact, ’scientists’ is generally recognized. In July 2009, the Economist magazine ran a front-page story, reporting widespread disenchantment with mainstream economic thought.

Strictly speaking, modern economics is not a science, but rather a belief system, like a religion.

Nobel prizes in ‘economic science’ for work not based on the scientific method are like giving Nobel peace prizes to terrorists.

Page 1 of 6123456

Featured articles on inside pages

Stock buybacks

Buybacks + options + hedge funds

Stock buyback programs are a legalized form of market manipulation, sanctioned under SEC Rule 10b-18 and that serve to drive up the price of a company's stock and to give false value to executive stock options.
More ...

Securities Analysis

Can index funds protect you against inflation?

Historical evidence suggests that equities do not offer fool-proof protection against inflation. Inflation brings high interest rates, confounds accounting practices, and is associated with bad government. More ...

US Politics

Why Congress won't kill ACORN

Closely connected with President Obama, the ACORN group of "community organizers" has drawn censure from the Democrat-controlled Congress as a result of investigative reporting by James O'Keefe and Hannah Giles. More ...

US equities

The productivity vs. population debate

The 'Baby Boomer Bomb' refers to the expected effect of the retirement of the Baby Boomer generation on capital markets, particularly equities. Two proposed 'solutions' to the problem are examined: Boomers being 'saved' by productivity and technology; and, alternatively, by selling their financial assets to the next generation..
More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

Custom Search

Subscribe / Follow

Subscribe via RSS Subscribe via Email

Site navigation

Capital Flow Watch has hundreds of articles on economics and investments.

Articles have excerpts on the front pages, and on tag, category, search and archive pages.


Review capital-flow-watch.net on alexa.com

» Blog Guide

Excerpts by Category

Article Calendar

July 2009
MTWTFSS
« Jun Aug »
 12345
6789101112
13141516171819
20212223242526
2728293031 

Stock Quotes

DJIA10340.92  chart +0.20%
NASDAQ2186.22  chart -0.18%
S&P 5001084.54  chart +0.09%

Ftse 1005275.44  chart +0.18%
Dax6110.41  chart -0.40%
Cac 403610.91  chart -0.28%

Nikkei 2259253.46  chart +0.44%
Hang Seng Index21071.57  chart -0.16%
Straits Times Ind2939.97  chart +0.44%

Eur To Usd1.28  chart +0.44%
Usd To Jpy86.20  chart +0.44%
Gbp To Usd1.56  chart +0.44%

2010-08-13 13:06