The prevailing wisdom on real estate investment trusts (REITs) is that they’ll be doomed once interest rates start to rise. Because of the way REITs are structured for tax purposes they have to pay out at least 90% of their taxable income in the form of dividends. The thinking goes that higher interest rates will…

Thousands of investment professionals gathered at McCormick Place in Chicago earlier this summer for the annual Morningstar Conference. The room had a definitive buzz to it at lunchtime. Bill Gross was the keynote lunch speaker and everyone was patiently waiting to see what he would have to say after stories, rumors and gossip swirled from…

It’s not simply the news or the data itself that makes things interesting when following the markets, but the discussion and reaction that they bring about from investors. Interpretation and perception become the most important element, especially since information is so easy to come by these days.

Vanity Fair has a fascinating article in the latest issue on airplane safety and how it affects pilot error. To make planes safer these days, engineers have designed automated systems that basically allow the planes to fly themselves.

“If every stock you own is on the new high list, you’re a momentum guy. If every stock you own is on the new low list, you’re out of business.” – Leon Cooperman Mean reversion is one of the most powerful forces in all of finance. Above average performance is eventually followed by below average performance….

In early 2006 I was in the market for a new job. A friend from college worked for one of the largest banks and asked if I’d like to interview for a spot in his group.

“The intelligent investor realizes that stocks become more risky, not less, as their prices rise, and less risky, not more, as their prices fall.” – Jason Zweig If you’re in the business of fear-mongering, one of the go-to moves to try to scare investors is to predict that the markets are looking eerily similar to…

“The term bubble should indicate a price that no reasonable future outcome can justify.” – Cliff Asness There’s been a steady stream of bubble talk since the financial crisis. Everything that goes up in value ends up being called a bubble — stocks, bonds, gold, IPOs, biotech, Silicon Valley, etc. Most investors seem surprised more…

“I’m trying to manage myself, not just my portfolio.” – Guy Spier

When asked what people would learn from the financial crisis, GMO’s Jeremy Grantham replied: In the short term a lot, in the medium term a little, the in the long term, nothing at all. That would be historical precedent. As they say, we don’t want to let a crisis go to waste. Here are some…