Comments for Capital Stories http://www.investmentadvisorottawa.com A blog by Patrick Mullins Wed, 10 Aug 2011 12:11:06 -0500 http://wordpress.org/?v=2.8.4 hourly 1 Comment on Too big to fail….The National edition by Patrick http://www.investmentadvisorottawa.com/2011/08/too-big-to-fail%e2%80%a6-the-national-edition/comment-page-1/#comment-916 Patrick Wed, 10 Aug 2011 12:11:06 +0000 http://www.investmentadvisorottawa.com/?p=1070#comment-916 Russell, I agree, the media "noise" can add to stress and turn investors into speculators. My sense of it is that people want to know why markets have recently gone down (or up) and there is a tendency for the media to seek out experts who predicted the recent advance or decline in the market. In Behavioral finance terms investors are motivated to avoid regret, so they consider following the advice of the expert who was most recently correct. Unfortunately the expert opinion isn't concerned with the interests of individual investors. It is especially troubling when pundits who predict low probability events are relied on to provide a reasonable strategy for the future. An ability to predict low probability events in not a skill that is particularly useful for investors. Russell, I agree, the media “noise” can add to stress and turn investors into speculators. My sense of it is that people want to know why markets have recently gone down (or up) and there is a tendency for the media to seek out experts who predicted the recent advance or decline in the market. In Behavioral finance terms investors are motivated to avoid regret, so they consider following the advice of the expert who was most recently correct. Unfortunately the expert opinion isn’t concerned with the interests of individual investors. It is especially troubling when pundits who predict low probability events are relied on to provide a reasonable strategy for the future. An ability to predict low probability events in not a skill that is particularly useful for investors.

]]> Comment on Too big to fail….The National edition by Russell LaPointe http://www.investmentadvisorottawa.com/2011/08/too-big-to-fail%e2%80%a6-the-national-edition/comment-page-1/#comment-913 Russell LaPointe Tue, 09 Aug 2011 12:26:00 +0000 http://www.investmentadvisorottawa.com/?p=1070#comment-913 I think you forgot about Star Trek: The wrath of kahn. A question Do you think the couverage of the markets by the media is leading to this type of reaction? For example there has been little reaction to the U.S. downgrading (which should never of happened See these two articles http://www.nytimes.com/2011/08/08/opinion/credibility-chutzpah-and-debt.html?_r=2&src=ISMR_HP_LO_MST_FB and http://www.nytimes.com/2011/08/09/opinion/nocera-while-the-markets-swoon.html?_r=1&src=recg I kind of find the comentary right now is not about the fundamental basics and more about the hype. What do you think? Or am I wrong? I think you forgot about Star Trek: The wrath of kahn.

A question Do you think the couverage of the markets by the media is leading to this type of reaction?

For example there has been little reaction to the U.S. downgrading (which should never of happened See these two articles http://www.nytimes.com/2011/08/08/opinion/credibility-chutzpah-and-debt.html?_r=2&src=ISMR_HP_LO_MST_FB
and http://www.nytimes.com/2011/08/09/opinion/nocera-while-the-markets-swoon.html?_r=1&src=recg
I kind of find the comentary right now is not about the fundamental basics and more about the hype.
What do you think? Or am I wrong?

]]> Comment on We can’t all eat somebody else’s lunch: Why we recommend Private Equity for our Investment Portfolios by Patrick Mullins http://www.investmentadvisorottawa.com/2011/01/we-can%e2%80%99t-all-eat-somebody-else%e2%80%99s-lunch-why-we-recommend-private-equity-for-our-investment-portfolios/comment-page-1/#comment-285 Patrick Mullins Thu, 03 Feb 2011 14:56:12 +0000 http://www.investmentadvisorottawa.com/?p=1009#comment-285 Bob, thanks for the comments. We always welcome feedback, even from sunny Florida. Enjoy. Patrick Bob, thanks for the comments. We always welcome feedback, even from sunny Florida. Enjoy.

Patrick

]]> Comment on We can’t all eat somebody else’s lunch: Why we recommend Private Equity for our Investment Portfolios by Bob Goudie http://www.investmentadvisorottawa.com/2011/01/we-can%e2%80%99t-all-eat-somebody-else%e2%80%99s-lunch-why-we-recommend-private-equity-for-our-investment-portfolios/comment-page-1/#comment-284 Bob Goudie Wed, 02 Feb 2011 22:03:42 +0000 http://www.investmentadvisorottawa.com/?p=1009#comment-284 Hi from sunny Florida, Patrick. (I had to throw that in since the weather was so bad here last winter, sorry). I enjoyed this article which was interesting and explains a lot. Certainly I am satisfied the way things are going now and it appears we could be finally entering into a bull market, which should do well for all of us. Thank you and Jennifer for all your efforts on our behalf. Bob Hi from sunny Florida, Patrick. (I had to throw that in since the weather was so bad here last winter, sorry).

I enjoyed this article which was interesting and explains a lot. Certainly I am satisfied the way things are going now and it appears we could be finally entering into a bull market, which should do well for all of us. Thank you and Jennifer for all your efforts on our behalf.

Bob

]]> Comment on Part II – Dealers…Too big to Fail by Aaron http://www.investmentadvisorottawa.com/2009/11/a-review-of-the-us-monetary-system-suppliers-dealers-and-users-2/comment-page-1/#comment-116 Aaron Fri, 06 Nov 2009 03:56:06 +0000 http://www.investmentadvisorottawa.com/?p=843#comment-116 Excellent article and the new web site looks great! Excellent article and the new web site looks great!

]]> Comment on Day 525 – confusion reigns by wonker http://www.investmentadvisorottawa.com/2009/03/day-525-confusion-reigns/comment-page-1/#comment-20 wonker Wed, 18 Mar 2009 22:59:48 +0000 http://investmentadvisorottawa.com/?p=565#comment-20 Interesting blog, I'll try and spread the word. Interesting blog, I’ll try and spread the word.

]]> Comment on This Way Forward by Posts about Investors in Startups as of January 19, 2009 | The Lessnau Lounge http://www.investmentadvisorottawa.com/2009/01/this-way-forward/comment-page-1/#comment-18 Posts about Investors in Startups as of January 19, 2009 | The Lessnau Lounge Mon, 19 Jan 2009 20:02:51 +0000 http://investmentadvisorottawa.com/?p=328#comment-18 [...] constant theme – the shortage of homegrown venture capital. That is particularly noticeable This Way Forward - investmentadvisorottawa.com 01/19/2009 This week is all about setting a new agenda - Obama style [...] [...] constant theme – the shortage of homegrown venture capital. That is particularly noticeable This Way Forward – investmentadvisorottawa.com 01/19/2009 This week is all about setting a new agenda - Obama style [...]

]]> Comment on Fat Tails and Kicking 2008 to the curb by Backing the Small Investor « Capital Stories http://www.investmentadvisorottawa.com/2009/01/fat-tails-and-kicking-2008-to-the-curb/comment-page-1/#comment-16 Backing the Small Investor « Capital Stories Thu, 08 Jan 2009 17:26:08 +0000 http://investmentadvisorottawa.com/?p=271#comment-16 [...] Backing the Small Investor Posted on January 8, 2009 by patrickmullins Bob Keyes, on January 7th, 2009 at 3:32 pm [...] [...] Backing the Small Investor Posted on January 8, 2009 by patrickmullins Bob Keyes, on January 7th, 2009 at 3:32 pm [...]

]]> Comment on Fat Tails and Kicking 2008 to the curb by Bob Keyes http://www.investmentadvisorottawa.com/2009/01/fat-tails-and-kicking-2008-to-the-curb/comment-page-1/#comment-14 Bob Keyes Wed, 07 Jan 2009 20:32:14 +0000 http://investmentadvisorottawa.com/?p=271#comment-14 Patrick, as an investment advisor, how do you balance the risks and need of an individual investor who is trying to make a return in a market dominated by big players/hedge funds/institutions who have a very different risk profile and appetite than a small investor has. Seems to me that the small guy is just along for the ride, be it good or bad, and has to try to anticipate the risk profile of those who dominate the markets because they are the players that will ultimately determine how well markets perform and react to events. Patrick, as an investment advisor, how do you balance the risks and need of an individual investor who is trying to make a return in a market dominated by big players/hedge funds/institutions who have a very different risk profile and appetite than a small investor has. Seems to me that the small guy is just along for the ride, be it good or bad, and has to try to anticipate the risk profile of those who dominate the markets because they are the players that will ultimately determine how well markets perform and react to events.

]]> Comment on Fat Tails and Kicking 2008 to the curb by John Lighthall http://www.investmentadvisorottawa.com/2009/01/fat-tails-and-kicking-2008-to-the-curb/comment-page-1/#comment-15 John Lighthall Sat, 03 Jan 2009 17:58:48 +0000 http://investmentadvisorottawa.com/?p=271#comment-15 It looks from the reference material that there are also skinny tails, depending on the parameters of the curve, but it isn't clear (to me, anyway), what determines those parameters. I suggest that curves are not applicable in this case, because it is not a random event, but something close to a scam, with many people, who should have known better, taking a "see no evil" approach to investing large amounts. Why didn't they do due diligence? The comedians saw the situation - check the following: http://www.brasschecktv.com/page/187.html Regards, John It looks from the reference material that there are also skinny tails, depending on the parameters of the curve, but it isn’t clear (to me, anyway), what determines those parameters. I suggest that curves are not applicable in this case, because it is not a random event, but something close to a scam, with many people, who should have known better, taking a “see no evil” approach to investing large amounts. Why didn’t they do due diligence? The comedians saw the situation – check the following:

http://www.brasschecktv.com/page/187.html

Regards,
John

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