Prof Andrew Lo: what’s wrong with the “traditional investment paradigm”?


I will, gladly, let Andrew Lo explain in great detail. A link to his paper follows this extract BUT I have highlighted something that, to me, is pretty fundamental…attempting to model a non-linear future based upon a past of, patently flawed, assumptions!:

The traditional investment paradigm is based on several key assumptions including rational investors, stationary probability laws, and a positive linear relationship between risk and expected return with parameters that are constant over time and which can be accurately estimated. These assumptions were plausible during the “Great Modulation” — the seven decades spanning the mid-1930s to the mid-2000s in which equity markets exhibited relatively stable risk and expected returns — but have broken down during the past decade, implying Read more of this post

The Seven Habits of Spectacularly Unsuccessful Executives – Forbes


Do yourself, your family, industry and society a favour…if your boss or senior executives at your company exhibit several of these traits, now is the time to start looking for a new job.

The Seven Habits of Spectacularly Unsuccessful Executives – Forbes.