Investing Is Biology Not Physics
Markets evolve and adapt. Be careful extrapolating from the past.
Education
Moontower Blog
Our thinking on options, trading, investing.
Is There Actually An Equity Premium Puzzle?
The distribution of the stock market is different than the distribution of stocks
How Much of Momentum Is Caused By Randomness?
This is an example of a broad question we should always ask ourselves: "what would the random version of some process look like?"
How Math Is Sufficient To Explain Small Stock Outperformance
Is it possible that factors overexplain excess performance?
Your Portfolio Intuition Is Poor
Our instincts about the role of correlation are not well-tuned
The Antisocial Advantage
When "disagreeable" is an adaptive trait
Percents Are Tricky
Possible pitfalls of thinking in percents with ratios
The Volatility Drain
The arithmetic behind how increased volatility reduces average compounded returns
The Peace Dividend of Overvaluation
What high prices beg for
Levered ETF/ETN tool
Compute the amount of dollars required to rebalance a levered exposure
The difficulty with shorting and inverse positions
The brutal arithmetic behind shorting
Are car leases confusing?
Leases are options with an embedded cost of carry
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