Post Modern Security Analysis
By John Schroy, on July 28th, 2009 |

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:
By John Schroy, on July 26th, 2009 |

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
By John Schroy, on July 25th, 2009 |

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.
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