Mad Money Machine

Corrected 12 Month Rolling Returns

In a previous posting , I calculated the 12 month rolling returns for all IFA portfolios. That posting is in error (that I do not believe was my fault). I have corrected it. It turns out that Feb 1, 2008 thru Jan 31, 2009 was not the worst 12-month rolling period, but it did come […]

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Bet Against Cramer, Make Money

Barrons continues their analysis of Jim Cramer’s Mad Money stock recommendations. Bottom line is that their analysis confirms what I learned by experience back in 2006: Cramer’s stock picks are worse than just buying and holding index funds. They actually suggest that buying short-term in-the-money puts on Jim’s recommendations can make you money. They say, […]

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Backtest Portfolio Challenge

[Update: Corrected the image. Note that the Bogle portfolio is corrected in the Google Spreadsheet – to some extent.] I have copied Simba’s Backtest Portfolio spreadsheet from the Bogleheads forum into a Google Spreadsheet that you can use to back test a portfolio of Vanguard mutual funds and compare their performance from 1972 – 2008 […]

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Kindle 2 Announced. Should you buy?

Amazon announced the upgrade to their Kindle ebook reading device today. Get in line to buy one if you want. I just sold my old one yesterday. I will probably not be buying the new one because I think for $359 I can buy a heck of a lot of books. Or I can buy […]

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Benchmarking *YOUR* Portfolio

I just remembered a web site that was a Tool many many shows ago. This tool will help you benchmark your portfolio or to test out a new portfolio. It will allow you to compare it against another benchmark and it will calculate returns, standard deviations, and also Sharpe ratios. The web site is http://www.icarra.com […]

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Index Funds: The Musical!

Here’s an easy to digest journey through the 12 Step Program for Active Investors. The 12 steps span four videos. Be sure to watch all four! FOR BEST RESULTS, AFTER YOU CLICK PLAY, CLICK THE ARROW BUTTON IN THE BOTTOM RIGHT THEN SELECT "HQ" TO GET EVERY OUNCE OF INDEXING JOY FROM THESE VIDEOS!!! Steps […]

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Downdraft Keeps A Rollin’ (corrected)

At the end of October 2008 we experienced the worst 12-month rolling period for stocks in 50 years. Then at the end of November we outdid that.  Now at the end of January 2009 we have a new low for a 12-month rolling period in many indexes and portfolios. We came close to the worst […]

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It’s Groundhog Day, Again.

We just finished watching our favorite movie. Again. Every year on February 2nd we try to set aside some time to watch Groundhog Day. Again and again. When I say favorite, I mean our number one pick of all movies. The only other movie we watch multiple times would be some version of Charles Dickens’ […]

Tags: Blog, Fun

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The Day the Market Fell

The Day the Market Fell. Good music for your Saturday… From BLUE YORK by John thomas Oaks and Grand Central Music and Lyrics by John thomas Oaks Featuring Tim Caudill — Bass, Gary "Biscuit" Davis — Banjo, Kevin Moore — Fiddle, Jeff Zona — Acoustic Guitar, Lakieta Bagwell and Jimmy Bryant — BGVs

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The Randomness of Stock Returns

First look at this… Then look at this… Returns in the stock market are randomly distributed over time.

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Can the Free Market Work in the USA?

Let’s say we suddenly start doing everything right according to the Austrian economics playbook. We go on the gold standard and abolish the Federal Reserve. We drastically cut back federal government spending, including all bailouts. We pull back from all overseas engagements. Would it work? Meaning, would we end up more prosperous in the long […]

Tags: gold austrian economics

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