In a recent Bloomberg article, the co-founder and chief investment officer of Ritholtz Wealth Management debunks the notion that the stock market’s record performance is tied to hopes around the president’s policy agenda. Ritholtz argues, “First, there is the tendency of the markets to ignore the dysfunction in Washington—as they have for most of the […]
By John P. Reese The mathematician Ed Thorp figured out how to beat Las Vegas casinos at blackjack and baccarat and they didn’t like it. But the MIT and University of California Irvine professor didn’t get discouraged. He applied those same mathematical principles to the markets, and also won. Mr. Thorp knows that good ideas […]
Active fund management has been losing followers but isn’t going away entirely, writes Barry Ritholtz in a recent Bloomberg article. While stock-picking has seen a host of changes, he offers several insights as to “how we got here” including the following: Beating the market is tougher than most people thought, a notion that Ritholtz says […]
Understanding how old a bull market is may very likely affect your expectations of future returns as well as your investment allocations and risk appetite, writes Bloomberg columnist Barry Ritholtz. With regard to what many are calling an eight-year-old bull market, Ritholtz argues, “Rather than saying that the bull market is celebrating its eighth birthday, […]
Barry Ritholtz, columnist and founder of Ritholtz Wealth Management, offers insights on the “problems and investing risks of forecasting” in a recent Bloomberg View. He explains that, because people dislike uncertainty so much, they tend to believe in predictions to create an “illusion of control and stability, where often there is none. Order is created […]
Be wary of the media-hype around the “best stocks to own in 2017” says columnist Barry Ritholz, CIO of Ritholz Wealth Management, in a recent Washington Post article. The lists, Ritholz argues, “look slick and professional; they seem to be expertly assembled” with both high-profile and more obscure names. He explains, however, that after taking […]
“Everyone knew Trump would win all along,” writes Barry Ritholtz in last week’s BloombergView, arguing that such hindsight bias “haunts investors constantly.” Specifically, he explains, the human brain creates “stories after the fact to conform with what we now know.” Ritholtz uses the examples of; (1) the financial crisis, and how many people claimed (after […]
Another round of advice on sticking to an investment plan might sound like our needle is stuck, but this time we’re coming at it from a slightly different angle. Bloomberg View columnist Barry Ritholtz shares perspective on comments made earlier this month by Convergex chief strategist Nick Colas. The gist of Colas’ view was that […]
“Something bad happens somewhere, and markets are unhinged. Once the noise subsides and the markets settles down, everyone wonders what the heck just happened,” writes Barry Ritholtz, chief investment officer of Ritholtz Wealth Management and columnist for The Washington Post. He references the Brexit vote and why it, or other macro events, shouldn’t affect your […]
“Hall of Famer Ted Williams approached batting not as something done on instinct, but rather as a methodical, evidence-based process,” says BloombergView columnist and founder of Ritholtz Wealth Management, Barry Ritholtz. Ritholtz recalled that Warren Buffett had recommended Williams’ book, “The Science of Hitting,” in the context of making better decisions. He writes that “Williams […]
Barry Ritholtz, founder of Ritholtz Wealth Management and columnist for Bloomberg, briefly recounts the story of Joseph Granville to convey the risk of “1) try[ing] to time markets; 2) tak[ing] ourselves too seriously; and 3) refus[ing] to acknowledge our fallibility.” Granville rose to prominence in the 1970s and had a series of prescient calls by […]
Barry Ritholtz, Bloomberg columnist and founder of Ritholtz Wealth Management, points out that 2015 has been essentially flat and, looking to history, concludes: “by itself, a flat market does not tell us very much of anything about the following years’ subsequent returns.” He notes that two opposing views are common in predicting markets after flat […]
Earlier this month, Barry Ritholtz of Ritholtz Wealth Management suggested in his Washington Post column that amateurs may be able to beat professional investors. Countering Charles Ellis’ suggestion that amateur investors are seriously disadvantaged as amateur football players would be against the pros, Ritholz opines that amateur investors “have enormous advantages of their own.” He […]
While pundits have been throwing around the term “bubble” throughout the stock market’s climb over the past few years, Barry Ritholtz doesn’t sound concerned that we’re in one.
In a wide-ranging interview with Barry Ritholtz on Bloomberg’s Masters In Business podcast, Charles Schwab’s Liz Ann Sonders offers her take on the bull market, and a look at her early years working for the great Martin Zweig.