Apr 18, 2014
Government regulators seem to start with the idea that individuals cannot be trusted with small decisions. To overcome the inability of the average person to think about the right way to do something, regulators write detailed rules.
Apr 16, 2014
Many analysts focus on price action to understand markets. They try forecasting the future by identifying trends in prices. In some markets, this approach ignores some of the most valuable information markets offer.
Apr 11, 2014
Stock market bears always seem to claim the market is overvalued and set to fall. They could be right, but their valuation models are usually incomplete. Price-earnings (P/E) ratios depend on interest rates, and low rates drive P/E ratios higher.
Apr 8, 2014
Avoiding the question of whether high-frequency trading is good or bad, the costs of trading can be lowered with limit orders.
Apr 4, 2014
Questions are once again being raised about high-frequency trading (HFT). These traders buy and sell quickly, often holding stocks for just a few milliseconds.
Apr 2, 2014
For weeks now, headlines have warned that a decline in copper prices means the stock market is going to fall. The truth is declines in the price of copper are rarely followed by selloffs in the stock market.
Mar 27, 2014
Unless the housing market is in a bubble, home prices are determined by average family income and interest rates. With income growth stalled and interest rates more likely to rise than fall over the next few years, home prices have little upside potential.
Mar 26, 2014
Health insurance is demonstrating that the private sector is somehow able to price products at a significant discount to the government.