Weston Wellington, the Vice President of Dimensional Fund Advisors in the US provides timely commentary and insight in response to prominent financial media headlines and topics concerning investors today. In this article he warns that Investors would do well to expect the unexpected every year.
The recent awarding of the Nobel Prize in economics to Professor Eugene Fama has sparked some criticism of his theory of efficient markets. Debate is a good thing, but it is always advisable to start with the right definitions. Fama’s ‘efficient markets hypothesis’ is a model of how markets behave. It was developed back in […]
The Chinese philosopher Confucius once said that life is very simple, but we insist on making it complicated. You could say the same thing about investment. Complexity in investment often goes with a lack of transparency. The highly engineered and multi-layered financial derivatives that contributed to the global financial crisis five years ago are a […]
In New York, last Wednesday’s trading session was marked by unusual activity in 148 shares, many of which swung sharply in the first hour of trading due to an apparent error in a newly installed software programme developed by seventeen-year-old Knight Capital Group Inc., one of the largest market-making and trading firms. For some, the […]
Joe Nocera is a bright guy. Over the course of a lengthy career, the former Fortune executive editor has won numerous awards for excellence in business journalism and recently co-authored a penetrating analysis of the financial crisis (All the Devils Are Here: The Hidden History of the Financial Crisis). He now hangs his hat at […]