Must Reads of the Week – October 18, 2018

Must Reads of the Week

Our favorite reads of the week and the quotes that make them worthy…

Last week was a good reminder that there is no ironclad law that rates and equities can’t sell-off at the same time.”
Managing Equity Risk When Rates Rise by Justin Sibears | Flirting with Models – Research Library of Newfound Research

“In one of my favorite academic papers, Terrance Odean and Brad Barber found that accounts owned by women outperformed those of men because they traded less often and incurred less trading costs.”
Why Not Women? by Blair Duquesnay | The Belle Curve

“And most of the time there isn’t a catalyst for the fall. There really wasn’t a good reason for stocks to fall yesterday just like there wasn’t a good reason for them to fall earlier this year (just like there wasn’t a good reason for them to rise so much in January either).”
Big Down Days by Ben Carlson, CFA | A Wealth of Common Sense

“The least-gifted children of high-income parents graduate from college at higher rates than the most-gifted children of low-income parents.”
It’s better to be born rich than gifted by Andrew Van Dam | The Washington Post

“What drives stock prices are corporate profits, which lie mostly outside government control, and inflation, which is perceived to be under government supervision, but which in reality is an unherded cat.”
Should We Have Foreseen This Bull Market? by John Rekenthaler | Morningstar

“To be clear, financial industry leaders aren’t saying a crisis is already unfolding—just that they aren’t going to pursue as many deals in the present environment.”
Bankers Are Worried About Sky High Commercial Real Estate Prices by Noah Buhayar | Bloomberg

“In order to appeal to other economists, behavioral economists are too often concerned with describing how human behavior deviates from the assumptions of standard economic models, rather than with understanding why people behave the way they do.”
Why Is Behavioral Economics So Popular? by David Gal | The New York Times

“People in power took the course they did, the economy didn’t collapse, and there is no way to know what would have happened otherwise.”
When the Next Recession Hits by Bethany McLean | The New Republic