User 113169's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/113169/comments http://seekingalpha.com/article/1282481/comments?source=feed#comment-16716121 16716121
Far more important, if you don't already have a pretty substantial background in MPT so as to know its strengths and weaknesses, I'd suggest you're likely to be doing yourself far more harm than good by trying to use tools such as these. It's kinda like giving a Ferrari to a 16 year old kid who just got his license. He knows what the steering wheel, gas and brake pedals do, but that doesn't mean he can't get in a lot of trouble very quickly.

Proceed with caution.]]> Sat, 23 Mar 2013 23:41:19 -0400
Far more important, if you don't already have a pretty substantial background in MPT so as to know its strengths and weaknesses, I'd suggest you're likely to be doing yourself far more harm than good by trying to use tools such as these. It's kinda like giving a Ferrari to a 16 year old kid who just got his license. He knows what the steering wheel, gas and brake pedals do, but that doesn't mean he can't get in a lot of trouble very quickly.

Proceed with caution.]]> http://seekingalpha.com/article/1087531/comments?source=feed#comment-13672411 13672411
Keep in mind that MPT is useful, but it does have limitations. I think that you may be expecting too much from it...]]> Mon, 14 Jan 2013 04:22:01 -0500
Keep in mind that MPT is useful, but it does have limitations. I think that you may be expecting too much from it...]]> http://seekingalpha.com/article/1087531/comments?source=feed#comment-13142191 13142191
2) I believe your assertion that high negatively-correlated assets aren't as beneficial is flawed. (As mentioned by pantograph above). You are neglecting the fact that the average returns for SPY and TLT are different. Also, reducing overall portfolio volatility permits one to increase the allocation to the higher return equity-oriented classes, and hence achieve higher expected returns.

3) I think you need more asset classes than you have included, which will provide additional diversification, permitting higher allocations to higher-return asset classes.

As someone with a background in finance, is well versed in MPT, and has done numerous analytical portfolio analyses over many years, I would encourage you to be very careful drawing conclusions from these types of analysis. There are things to be learned, but in the end you are trying to model something that is largely driven by human psychology. It is very easy to read things in the data that aren't really there.]]> Mon, 31 Dec 2012 08:05:33 -0500
2) I believe your assertion that high negatively-correlated assets aren't as beneficial is flawed. (As mentioned by pantograph above). You are neglecting the fact that the average returns for SPY and TLT are different. Also, reducing overall portfolio volatility permits one to increase the allocation to the higher return equity-oriented classes, and hence achieve higher expected returns.

3) I think you need more asset classes than you have included, which will provide additional diversification, permitting higher allocations to higher-return asset classes.

As someone with a background in finance, is well versed in MPT, and has done numerous analytical portfolio analyses over many years, I would encourage you to be very careful drawing conclusions from these types of analysis. There are things to be learned, but in the end you are trying to model something that is largely driven by human psychology. It is very easy to read things in the data that aren't really there.]]> http://seekingalpha.com/article/1072041/comments?source=feed#comment-12777871 12777871 Wed, 19 Dec 2012 12:18:30 -0500 http://seekingalpha.com/article/517301/comments?source=feed#comment-4689571 4689571
Immelt should spend more time running the company, and less time playing buddy buddy with Obama, and investing in politically correct businesses that have poor business models.

Until Immelt is gone, I'd stay away from GE (and I used to work there many years ago when Reg Jones and Welch were running the company).]]> Mon, 23 Apr 2012 11:40:12 -0400
Immelt should spend more time running the company, and less time playing buddy buddy with Obama, and investing in politically correct businesses that have poor business models.

Until Immelt is gone, I'd stay away from GE (and I used to work there many years ago when Reg Jones and Welch were running the company).]]> http://seekingalpha.com/article/407971/comments?source=feed#comment-3452821 3452821 Tue, 13 Mar 2012 20:36:04 -0400 http://seekingalpha.com/article/407971/comments?source=feed#comment-3452511 3452511 Tue, 13 Mar 2012 20:18:33 -0400 http://seekingalpha.com/article/407971/comments?source=feed#comment-3449651 3449651
Thanks for you help.]]> Tue, 13 Mar 2012 18:40:45 -0400
Thanks for you help.]]> http://seekingalpha.com/article/402711/comments?source=feed#comment-3142551 3142551 Will you let us know when you find out that your experience is not "generalizeable" and you lose $200K?

Sometimes the best lessons come from the trades where you lose money, rather than make money. I suspect you will likely learn a few "good lessons" in the future... ]]> Sat, 03 Mar 2012 16:55:28 -0500 Will you let us know when you find out that your experience is not "generalizeable" and you lose $200K?

Sometimes the best lessons come from the trades where you lose money, rather than make money. I suspect you will likely learn a few "good lessons" in the future... ]]> http://seekingalpha.com/article/402711/comments?source=feed#comment-3120601 3120601
What is it with this thread? I've been reading SA for some time now, and, well, some people -- good grief!]]> Fri, 02 Mar 2012 19:51:08 -0500
What is it with this thread? I've been reading SA for some time now, and, well, some people -- good grief!]]> http://seekingalpha.com/article/402711/comments?source=feed#comment-3120501 3120501 Fri, 02 Mar 2012 19:46:22 -0500 http://seekingalpha.com/article/404591/comments?source=feed#comment-3115251 3115251
Whether you realize it or not, the government could take every dime every person in the US has, and it still wouldn't be enough to pay off the debt and unfunded liabilities -- and it clearly isn't going to confiscate the entirety of everyone's assets in any event. This means that, in the end, we're all on our own.

And if you are on welfare, you should have to do at least some work for it -- I'm not saying a 40 hour work week, but at least do something. My mother used to say that it wouldn't hurt if people on welfare would have to spend an hour or two a week cleaning their street. It would at least give them their dignity back and make them feel that they were contributing something, not simply living on the dole. But I realize that's just too much to ask for some people! ]]> Fri, 02 Mar 2012 16:24:49 -0500
Whether you realize it or not, the government could take every dime every person in the US has, and it still wouldn't be enough to pay off the debt and unfunded liabilities -- and it clearly isn't going to confiscate the entirety of everyone's assets in any event. This means that, in the end, we're all on our own.

And if you are on welfare, you should have to do at least some work for it -- I'm not saying a 40 hour work week, but at least do something. My mother used to say that it wouldn't hurt if people on welfare would have to spend an hour or two a week cleaning their street. It would at least give them their dignity back and make them feel that they were contributing something, not simply living on the dole. But I realize that's just too much to ask for some people! ]]> http://seekingalpha.com/article/404591/comments?source=feed#comment-3114621 3114621
People like 8thman find it easier to complain than to work hard, take risks, and improve their life. Sadly, like many other commenters in this thread, he doesn't realize that, as a smart man once told me, "$hit flows downhill." It isn't necessarily right, but that's the world we live in. Complaining isn't likely to change things for them. ]]> Fri, 02 Mar 2012 16:12:38 -0500
People like 8thman find it easier to complain than to work hard, take risks, and improve their life. Sadly, like many other commenters in this thread, he doesn't realize that, as a smart man once told me, "$hit flows downhill." It isn't necessarily right, but that's the world we live in. Complaining isn't likely to change things for them. ]]> http://seekingalpha.com/article/404591/comments?source=feed#comment-3114281 3114281
But unlike Obama, who has a nice pension and numerous ways to make money after he leaves office, most poor people are likely to stay that way because his policies will only reduce opportunities for them to make a better life for themselves. Sadly, these same people don't realize that voting for him will only hurt them even more in the end.]]> Fri, 02 Mar 2012 16:02:21 -0500
But unlike Obama, who has a nice pension and numerous ways to make money after he leaves office, most poor people are likely to stay that way because his policies will only reduce opportunities for them to make a better life for themselves. Sadly, these same people don't realize that voting for him will only hurt them even more in the end.]]> http://seekingalpha.com/article/396701/comments?source=feed#comment-3000051 3000051 Tue, 28 Feb 2012 11:56:14 -0500 http://seekingalpha.com/article/391061/comments?source=feed#comment-2958741 2958741 Mon, 27 Feb 2012 05:01:32 -0500 http://seekingalpha.com/article/359701/comments?source=feed#comment-2587711 2587711
Or, are you simply proving my own experience that 90% of the comments on SA aren't worth anything. (Fortunately, the 10% that are make it worth my time to read SA...)]]> Sun, 12 Feb 2012 17:04:24 -0500
Or, are you simply proving my own experience that 90% of the comments on SA aren't worth anything. (Fortunately, the 10% that are make it worth my time to read SA...)]]> http://seekingalpha.com/article/335111/comments?source=feed#comment-2366071 2366071 Fri, 03 Feb 2012 14:44:18 -0500 http://seekingalpha.com/article/311593/comments?source=feed#comment-2179625 2179625 Tue, 17 Jan 2012 03:29:45 -0500 http://seekingalpha.com/article/311593/comments?source=feed#comment-2179624 2179624 Tue, 17 Jan 2012 03:21:39 -0500 http://seekingalpha.com/article/311593/comments?source=feed#comment-2178548 2178548
Also, and certainly not to demean your education, there's a big difference between studying engineering in college for a few years, and practicing it in the real world.]]> Mon, 16 Jan 2012 15:22:04 -0500
Also, and certainly not to demean your education, there's a big difference between studying engineering in college for a few years, and practicing it in the real world.]]> http://seekingalpha.com/article/311593/comments?source=feed#comment-2178530 2178530
There are many engineers in "C-Suite" positions, many of them have MBAs to complement their engineering background.]]> Mon, 16 Jan 2012 15:15:36 -0500
There are many engineers in "C-Suite" positions, many of them have MBAs to complement their engineering background.]]> http://seekingalpha.com/article/311593/comments?source=feed#comment-2176284 2176284
In my own experience at least, you are by far the exception rather than the rule.

Then again, many (dare I say most) people I've known who believe they can "think critically" still suffer from points 2) and 3) I noted above -- and in my experience this issue is overwhelmingly one of those with liberal arts educations.

To think that those who study engineering and business don't "listen to others", or "read constantly", or "study everything I could get my brain around" -- or focus on the "posession of dollars" is simply naive.]]> Sun, 15 Jan 2012 14:46:21 -0500
In my own experience at least, you are by far the exception rather than the rule.

Then again, many (dare I say most) people I've known who believe they can "think critically" still suffer from points 2) and 3) I noted above -- and in my experience this issue is overwhelmingly one of those with liberal arts educations.

To think that those who study engineering and business don't "listen to others", or "read constantly", or "study everything I could get my brain around" -- or focus on the "posession of dollars" is simply naive.]]> http://seekingalpha.com/article/311593/comments?source=feed#comment-2167454 2167454
What's good for the goose is good for the gander, but admittedly it takes a certain kind of fair-minded person to see both sides of a story...]]> Thu, 12 Jan 2012 03:44:13 -0500
What's good for the goose is good for the gander, but admittedly it takes a certain kind of fair-minded person to see both sides of a story...]]> http://seekingalpha.com/article/317033/comments?source=feed#comment-2153177 2153177
In the end, you have to compare the return on an individual property with the return you can get on REITs that invest in comparable properties. And to be complete, you need to earn a higher return on the individual property than comparable REITs, since REITs have more diversification, professional management (here I don't mean day-to-day management, but "management" in the sense of running a large real estate portfolio), less risk, and liquidity.

Most people who buy real estate don't do this analyis/comparison (they should), but you may well be the exception.]]> Fri, 06 Jan 2012 11:55:35 -0500
In the end, you have to compare the return on an individual property with the return you can get on REITs that invest in comparable properties. And to be complete, you need to earn a higher return on the individual property than comparable REITs, since REITs have more diversification, professional management (here I don't mean day-to-day management, but "management" in the sense of running a large real estate portfolio), less risk, and liquidity.

Most people who buy real estate don't do this analyis/comparison (they should), but you may well be the exception.]]> http://seekingalpha.com/article/317033/comments?source=feed#comment-2145761 2145761 Tue, 03 Jan 2012 15:26:19 -0500 http://seekingalpha.com/article/316347/comments?source=feed#comment-2145677 2145677
The Federal Government has been raiding the so-called SS "fund" for decades. As a result, Social Security is currently about $15 Trillion underfunded. The Federal government will have to either cut SS benefits, or print money -- and they'll probably do both. Medicare is about $35 Trillion underfunded, and probably more at this point.]]> Tue, 03 Jan 2012 14:54:02 -0500
The Federal Government has been raiding the so-called SS "fund" for decades. As a result, Social Security is currently about $15 Trillion underfunded. The Federal government will have to either cut SS benefits, or print money -- and they'll probably do both. Medicare is about $35 Trillion underfunded, and probably more at this point.]]> http://seekingalpha.com/article/316744/comments?source=feed#comment-2143637 2143637 Mon, 02 Jan 2012 15:37:52 -0500 http://seekingalpha.com/article/316347/comments?source=feed#comment-2142547 2142547
Increasing taxes isn't going to solve the problem -- when one includes the National Debt, Unfunded SS, Medicare, Medicaid, etc., the total liability is estimated to be more than $80 Trillion. The entire net worth of the US population is only about $50 Trillion -- meaning that even if the Federal Government took every time that every person in the country has (which clearly will never happen), they still wouldn't be able to pay off these debts.

Something to think about...]]> Mon, 02 Jan 2012 05:10:54 -0500
Increasing taxes isn't going to solve the problem -- when one includes the National Debt, Unfunded SS, Medicare, Medicaid, etc., the total liability is estimated to be more than $80 Trillion. The entire net worth of the US population is only about $50 Trillion -- meaning that even if the Federal Government took every time that every person in the country has (which clearly will never happen), they still wouldn't be able to pay off these debts.

Something to think about...]]> http://seekingalpha.com/article/316824/comments?source=feed#comment-2141981 2141981 Sun, 01 Jan 2012 17:44:51 -0500