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10 Tuesday AM Reads

Barry Ritholtz

My Two-for-Tuesday morning train WFH reads: • Stock Pickers Never Had a Chance Against Hard Math of the Market : In years like this one, when just a few big companies outperform, it’s hard to assemble a winning portfolio. Mortgage rates typically trade a spread to the 10 year Treasury yield. With the 10 year at 4.2% 1987 Crash 3.

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50% Risk-free Annual Returns

Barry Ritholtz

emphasis added) The red flags were there for anyone who could put their greed aside and simply focus on the math. In the 2010s, the true risk-free rate of returns – 10-Year Treasuries – was yielding ~2.5%, so how could anything remotely risk-free be yielding 20 times that amount?

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New Data: What COVID-19 Is Doing To Main Street SMBs

PYMNTS

Those numbers are so stark that they are worth repeating. Doing The Math. Treasury Secretary Steve Mnuchin said Sunday (March 29) on Face the Nation that any SMB that has laid-off workers should hire them back, and that help is on the way. One in four businesses doubt they will make it. Only four in 10 are confident they will.

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Transcript: Steven Klinsky

Barry Ritholtz

September 13, 1981, I think the 10-year Treasury was 15.84 percent 10-year Treasuries, it is nowhere near kind of the situation. I mean, those were the — that’s what got people all excited and — RITHOLTZ: That’s venture capital numbers. So my first day at work was October 1,1981 at Goldman Sachs.

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Transcript: Graeme Forster, Orbis Investments

Barry Ritholtz

So I, I did a math degree at Oxford, which is more pure math. You know, pure math can be very theoretical and detached from the real world, and it’s getting worse. Graham Foster] : 00:02:54 That was a number, that was number theory, pure number theory. It gets further and further away the D P U go.

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Transcript: Greg Davis, CIO Vanguard

Barry Ritholtz

And it worked out and had multiple job offers coming out of school from a number of different insurance companies. I had a number of relationships that I built up and had another job lined up in New York City. DAVIS: So when we think about how those teams are evaluated, it’s a three-year number. So how did you perform?

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You’re Living in a World Wrought by Central Banks. Notice Anything Wrong?

CFO News Room

Take, for example, how the Fed views statistics, such as employment numbers, when it’s thinking about inflation or raising rates so quickly, which is really constraining to people on an actual budget facing other inflationary pressures, and, by the way, not actually doing anything about inflation. So those numbers are disparate.

Banking 100