Friday Pearls of Folly

Its Friday and its been a long week…

• When risks are high one reasonably expects the risk free rate to be low.

 

• Buy when interest rates are high, sell when they are low.

 

• ‘Tis calmest before the storm. ‘Tis very calm. Corollary: risk is high when VIX is low.

 

• Markets are attached to fundamentals by psychology, a very elastic couple.

 

• When the pie shrinks, people are less happy to share. There is a point when economic considerations give way to strategic considerations.

 

• ‘You got to know when to hold ’em, know when to fold ’em’. Kenny Rogers, The Gambler.

 

• “My options are decreasing mostly rapidly.” Gordon Sumner, Seven Days.

 

• Money can buy almost anything, even and especially experience. But pay as you go, there is no need for a retainer.

 

• Often the way to an efficient portfolio is a short memory.

 

• Often the way to successful trading is a long memory.