Capital Market

Organized markets such as the NASDAQ that provide a mechanism for the purchase and sale of longer term (usually exceeding 1 year) equity and debt securities.

The Prevalence of Large Negative Returns on Major Asset Classes

It is natural and tempting to assume that the capital market losses that occurred during the recent financial crisis represent a statistical outlier, a perfect storm, a rare, once in a century event—a black swan. This is not at all the case. An unsettling and eye-opening table in the current issue of the Financial Analysts Journal is reproduced below. The data, provided as part of a guest editorial authored by Laurence B. Siegel, clearly show that large negative returns such as those...

Low or No Surprises Supports the Case for Annuities in Retirement

In a basic sense, information theory measures the level of surprise in a message.

A highly informative message will come as a complete surprise and tell you something about which you had no previous knowledge.

Sounds pretty good, right—of what use is it to be told what you already know?  Well, there are actually cases where information is not so welcome.

Key Phrases Autotag: 

Why Even Bother with Self-Service Investing During Retirement

I have a huge amount of sympathy for many of the people who are recently retired or close to retirement.


The World is Very Long on Longevity Risk

Longevity risk is clearly a huge growth market.  One has to wonder, though, where the capacity to address this market opportunity will come from.


Sequence of Returns Risk Report

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