Comments on: Larry Swedroe http://allfinancialmatters.com/2008/02/01/larry-swedroe/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 02:50:51 +0000 hourly 1 http://wordpress.org/?v= By: Sam http://allfinancialmatters.com/2008/02/01/larry-swedroe/comment-page-1/#comment-225616 Sam Mon, 04 Feb 2008 00:35:43 +0000 http://allfinancialmatters.com/?p=2305#comment-225616 I have always admired Warren Buffet's investment strategy (OK, me and 50 million other investors.) I have always admired Warren Buffet’s investment strategy (OK, me and 50 million other investors.)

]]> By: Frank http://allfinancialmatters.com/2008/02/01/larry-swedroe/comment-page-1/#comment-224464 Frank Sat, 02 Feb 2008 14:50:43 +0000 http://allfinancialmatters.com/?p=2305#comment-224464 "The Big Investment Lie, What Your Financial Advisor Doesn't Want You to Know" by Michael Edesess When I read the title of this book to several financial advisors responded, "Oh no, not another book slamming financial advisors..." (you can imagine what came next, everything from A-Z). Well, it is a good book. Wall Street is a $200 billion (+) dollar a year business and that money comes right out of the clients pocketbooks. Even so, I say, invest, but invest smart! Great site JLP! Some good articles lately, including the "what-are-the-root-causes-of-being-poor"! We should be having these discussions on a national scale. Sadly we are not. “The Big Investment Lie, What Your Financial Advisor Doesn’t Want You to Know” by Michael Edesess

When I read the title of this book to several financial advisors responded, “Oh no, not another book slamming financial advisors…” (you can imagine what came next, everything from A-Z).

Well, it is a good book.

Wall Street is a $200 billion (+) dollar a year business and that money comes right out of the clients pocketbooks.

Even so, I say, invest, but invest smart!

Great site JLP! Some good articles lately, including the
“what-are-the-root-causes-of-being-poor”!

We should be having these discussions on a national scale.

Sadly we are not.

]]> By: David B http://allfinancialmatters.com/2008/02/01/larry-swedroe/comment-page-1/#comment-224014 David B Sat, 02 Feb 2008 04:06:32 +0000 http://allfinancialmatters.com/?p=2305#comment-224014 Although I agree with Larry's conclusion regarding the lack of benefit for most investors subscribing to an exit and reentry strategy, I disagree with how he arrives at his conclusion. His use of statistics in this case, and more specifically, his use of averages discounts market fluctuations and the resulting effects on a portfolio over time. As the standard deviation of a series of market returns for some n years increases, the larger the difference will be between actual returns and predicted returns using the average. Using averages may be a great illustrating tool for teaching the basics to beginners, but beyond that it discounts market fluctuations, and overemphasizes the benefits of market investing. Averages hide the nuances of the market. Although I agree with Larry’s conclusion regarding the lack of benefit for most investors subscribing to an exit and reentry strategy, I disagree with how he arrives at his conclusion.

His use of statistics in this case, and more specifically, his use of averages discounts market fluctuations and the resulting effects on a portfolio over time. As the standard deviation of a series of market returns for some n years increases, the larger the difference will be between actual returns and predicted returns using the average. Using averages may be a great illustrating tool for teaching the basics to beginners, but beyond that it discounts market fluctuations, and overemphasizes the benefits of market investing. Averages hide the nuances of the market.

]]>