What Happens When the Glass Is Too Big?

By 2 Cents on November 8th, 2010 | Category: Economics | 19 comments
Glass Too Big

Is the glass half empty, half full, or twice as large as it needs to be?

~Author Unknown

Update: Thanks to Christina at Northern Cheapskate for including this article in the Best of Money Carnival #77. Thanks also to Arohan at Personal Dividends for including this article in the Carnival of Wealth #12.

A couple of years ago my husband bought some really giant wine glasses. He loves them, but I happen to have abnormally small hands, and I find them hard to handle. Besides that, when you fill one of those things to just the one third mark, there’s enough wine there to make you a little sillier than you might like. It’s really hard to gauge your consumption. So now I just use a smaller glass.

There’s been a lot debate over whether the glass is half empty or [...]

Read on and enjoy … What Happens When the Glass Is Too Big?

Category: Economics | Tags: , , |

Modern Portfolio Theory: Fact or Fiction?

By 2 Cents on May 21st, 2010 | Category: Investing | 10 comments

“. . . the real conundrum in modern markets is the continued reliance of investors and policymakers on two false mantras. The first is that markets are efficient; and the second is that investors are rational. Both assertions are so specious that one has to question both the sanity or the intelligence of those who cling to them.”

~ Michael E. Lewitt

Update: This article was included in the Carnival of Financial Planning #143. Thanks!

My goal with this week’s series of posts was to simply make readers aware of some of the structural problems that our markets and economy face right now. We’ve looked at some of the ways today’s markets are different, a few ways to manage your money in challenging times, and 5 investing challenges for the next decade. Today, I’d like to [...]

Read on and enjoy … Modern Portfolio Theory: Fact or Fiction?

Category: Investing | Tags: , |