(Not) boring finds for October 2018
Our reading list this week considers factors leading to the next market correction; stock-based compensation; golfing economists; and the pitfalls of generalization.
Project Syndicate – The Icarus Economy
A mini series of mini articles trying to get a sense of what the next market correction could entail.
Pieces include: “What Next for the U.S. Stock Market?”; “The Depth of the Next U.S. Recession”; “Are Trump’s Policies Hurting Long Term U.S. Growth?”; “Trump’s Strong Dollar Weakness”; and “America’s Hidden Debt.”
Epsilon Theory – But our interests are aligned!
We think this article highlights how difficult it is for investors to get as close to the truth as possible in the decision-making process.
A round of golf and 20 questions with Nobel prize-winning economist Richard Thaler. Teed-up topics include golf, inertia, and of course, a bit of economics.
Farnam Street – The disproportional power of anecdotes
The tendency to generalize is a pervasive bias that renders decision-making an exercise of “mistaken extrapolation.” It is important to challenge anecdotal information sources and seek larger sample sizes.