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Nobel prize in economics The Nobel Memorial Prize in Economic Sciences, commonly referred to as the Nobel Prize in Economics (Swedish: Nobelpriset i ekonomi), is an award for outstanding contributions to the science of economics and is generally considered one of the most prestigious awards for that science. (Wikipedia Jan 2010)
Baby Boomers
By John Schroy, on June 6th, 2006 |

The ‘Baby Boomer Bomb’ refers to the expected effect of the retirement of the Baby Boomer generation on capital markets, particularly equities. In 2006, this issue was debated at the Milken Institute, and two solutions to the problem examined: Boomers being ’saved’ by productivity and technology; and, alternatively, by selling their financial assets to the next generation.
US Stocks
By John Schroy, on May 31st, 2006 |

The Sarbanes-Oxley Act of 2002, by discouraging companies to go public, will exacerbate the shortage of equities, with a negative effect on the US stock market, although this was not the intent of its authors. Poorly drafted, ill-conceived, and unfair this law does little to protect investors.
Morningstar ratings
By John Schroy, on May 28th, 2006 |

Mutual funds are sold primarily on the basis of ‘performance’ measured by historical ‘total return’.
The famous Morningstar ’star’ rating system is based on ‘total return’, in this case ‘risk-adjusted total return’ relative to funds of the same asset category.
A general’s stars are a clear indication of rank. People presume that ‘five stars’ are better than ‘three stars’, just as they presume that a ‘five star general’ is higher ranked than a ‘three star general’.
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