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A few weeks ago I apologized that because of a lack of time and the proliferation of anti-spam software, the FinanceProfessor.com newsletter was not really working as I had hoped. Thus, I offered my view that the blog was the future. Not surprisingly, I had a few complaints from those who liked the newsletter format
Thursday, October 28, 2004
Will Baby Boomers drive down stock prices?
For about as long as I can remember (which some days is a few hours ;) ) I have wondered what would happen when the so-called baby boom generation retires and starts withdrawing money from the stock market. Will they depress the stock market? Should I save more as a result?
Geanakoplos, Magill, and Quinzii provide an interesting look at this question and their findings suggest that those of us
Geanakoplos, Magill, and Quinzii provide an interesting look at this question and their findings suggest that those of us
Wednesday, October 27, 2004
The end of the quiet period!
Shout, shout let it all out! Sorry about the cheesy Tears for Fears referencee, but the quiet period may be over for large firms! The SEC has requested comments on ending the quiet period. And to that I say HURRAY!
The so-called quiet period was the time when firms that were in the process of selling shares to the public could not communicate with the public. This led to many problems when
The so-called quiet period was the time when firms that were in the process of selling shares to the public could not communicate with the public. This led to many problems when
SEC to regulate hedge funds
In a controversial ruling, the SEC decided by a 3-2 vote to begin regulating hedge funds.
Prior to this, hedge funds have been largely unregulated. Since the funds are targeted at wealthy investors and institutions, it has been widely held that the SEC need not worry itself with the funds. However, as the classic Bob Dylan song says, “The times they are a changing.”
The arguments against
Prior to this, hedge funds have been largely unregulated. Since the funds are targeted at wealthy investors and institutions, it has been widely held that the SEC need not worry itself with the funds. However, as the classic Bob Dylan song says, “The times they are a changing.”
The arguments against
Monday, October 25, 2004
PBS show on the Crash of 1929
Set your recorders! Monday Night Football will have some competition tonight from a PBS special on the Stock Market Crash of 1929. I have seen reviews for it and it looks very good.
PBS even provides teaching notes but they seem more suited for high school. One tip that I would suggest is to compare and contrast Fed actions following the crash of 1987 (and the attacks of 9-11 for that matter)
PBS even provides teaching notes but they seem more suited for high school. One tip that I would suggest is to compare and contrast Fed actions following the crash of 1987 (and the attacks of 9-11 for that matter)
Monday, October 18, 2004
More on Behavioral Finance
What a great article! It is a survey article on Behavioral Corporate Finance by Baker, Ruback, adn Wurgler. It is VERY good! Here is their abstract:
Research in behavioral corporate finance takes two distinct approaches. The first emphasizes that investors are less than fully rational. It views managerial financing and investment decisions as rational responses to securities market mispricing
Research in behavioral corporate finance takes two distinct approaches. The first emphasizes that investors are less than fully rational. It views managerial financing and investment decisions as rational responses to securities market mispricing
Fama on Market Efficiency- Not the same old thing!
sometimes I hate technology! I have rewritten this three times now. It keeps disappearing.WOW! If you have not read today's WSJ piece on Market Efficiency be sure to do so! It is on the first page (far left hand column) by Jon Hilsenrath. It is worth making a trip out to buy the paper if you doShort version:Even Fama is now admitting that behavioral finance has its place in the field.As a rule
Monday, October 11, 2004
Norwegian, American share Nobel economics prize - Oct. 11, 2004
Norwegian, American share Nobel economics prize - Oct. 11, 2004
Congratulations to Finn Kydland and Edward Prescott on winning the 2004 Nobel Prize for Economics!
While economic forecasting is difficult, our understanding has improved greatly in recent decades. We have come to understand that monetary and fiscal policy are important and that the supply side (not just the demand side) must be
Congratulations to Finn Kydland and Edward Prescott on winning the 2004 Nobel Prize for Economics!
While economic forecasting is difficult, our understanding has improved greatly in recent decades. We have come to understand that monetary and fiscal policy are important and that the supply side (not just the demand side) must be
Thursday, October 7, 2004
Finally something economists agree on: Free Trade! A speech by the Fed's Roger Ferguson
FRB: Speech, Ferguson--Free Trade: What Do Economists Really Know?--October 7, 2004 Quick what is the only thing that economists can agree on? Free Trade! That said, many in the "public at large" do not agree. That is why it always serves us well to go back and see why free trade is a "good thing." Bravo!! Fed Vice Chairman Roger Ferguson does a wonderful job defending Free Trade!
Monday, October 4, 2004
The Evolution of the FinanceProfessor.com newsletter
In the past week I have had several emails, and two phone calls, from people asking about the newsletter. So in part to save time and in part to explain to all, I will make a few public comments about the newsletter.
First of all, yes it is coming out. Soon. Or so I say. It just takes too long! I estimate about 8 hours. Now if I had an extra 8 hours laying around...lol.
But even more than the
First of all, yes it is coming out. Soon. Or so I say. It just takes too long! I estimate about 8 hours. Now if I had an extra 8 hours laying around...lol.
But even more than the
Saturday, October 2, 2004
NPR : The Marketplace Report: Forgiving Third World Debt
The nearly annual debate as to whether developed nations should forgive the debt owed them by less developed nations has been in the news again this week. MarketPlace is one of my favorite (non music) radio shows and All Things considered each had reports on it.
NPR : The Marketplace Report: Forgiving Third World Debt
All Things Considered also discussed it:
http://www.npr.org/templates/
NPR : The Marketplace Report: Forgiving Third World Debt
All Things Considered also discussed it:
http://www.npr.org/templates/
Friday, October 1, 2004
GREAT IDEA!!! Jump Start International
This is not a typical blog entry, but it does bring finance and business into a much better light and helps to reduce the unemployment in Iraq. I sure hope it is legit. It is almost too good to be true.
Those of you who have been subscribers for a while probably remember my editorial on how finance could help in the war against terrorism. By providing the funding necessary to improve the
Those of you who have been subscribers for a while probably remember my editorial on how finance could help in the war against terrorism. By providing the funding necessary to improve the
Dilbert Comic Strip Archive - Dilbert.com - The Official Dilbert Website by Scott Adams - Dilbert, Dogbert and Coworkers!
Dilbert Comic Strip Archive - Dilbert.com - The Official Dilbert Website by Scott Adams - Dilbert, Dogbert and Coworkers!
This is great! Now that we have Dilbert on our side, I am sure managers will start expensing executive stock options! :)
Seriously, I have long railed on the need to expense the options. I will try to review an article or two this coming week on executive options.
This is great! Now that we have Dilbert on our side, I am sure managers will start expensing executive stock options! :)
Seriously, I have long railed on the need to expense the options. I will try to review an article or two this coming week on executive options.