Education Level Correlates With Income and Employment
Most people work for companies looking to make a profit. These companies attempt to hire people that will help them achieve their goals....
Blog
Modern Portfolio Theory
Modern Portfolio Theory attempts to manage and define portfolio risk. The theory focuses on the relationships of all assets in a...
The Importance Of Correlation
Correlation, or lack of correlation, is an important factor in portfolio construction. A portfolio constructed of two assets that have...
The Accumulation Of Risk and Return
From 12/31/71 through 1/31/17 the monthly return and standard deviation, of the S&P 500 was 0.94% and 4.38%. Monthly return is not...
Are Monthly Asset Returns Normally Distributed?
A normal distribution, or bell curve, fairly accurately models the monthly returns for the S&P 500 (see blog post: Are S&P 500 Returns...
Are S&P 500 Returns Normally Distributed?
Does a normal distribution, or bell curve, accurately model returns for the S&P 500? Below are plots of 47 years or return data sorted by...
The Normal Distribution
In many natural processes, random variation conforms to a particular probability distribution known as the normal (Gaussian) distribution...
Understanding Probability Gives Confidence
Nothing is definite, the best thought out plans may falter, but you need a plan and you need confidence in the plan. Understanding the...
Inflation - Your Biggest Worry
Assets need to grow above the inflation rate in order to grow at all. Inflation is the biggest worry when trying to grow assets for...
Where A Typical Paycheck Goes
Here is a breakdown on where the typical paycheck goes: taxes 20%, insurance 12%, transportation 19%, housing 30%, utilities 6% and...