The Stingy News Weekly (07/19/2014)
Why the M-B test is meaningless
"This isn't a test designed to accurately categorize people, but a test designed to make them feel happy after taking it. This is one of the reasons why it's persisted for so many years in the corporate world, despite being disregarded by psychologists." [Behaviour]
The importance of being solvent
"What is wealth? To me, it isn't a particular sum of money. Rather, it's the freedom to spend your days doing what you're passionate about and what you think is important." [Thrift]
Technical market indicators
"Current evidence on the predictability of technical analysis largely concentrates on price-based technical indicators such as moving averages rules and trading range breakout rules. In contrast, the predictability of widely used technical market indicators such as advance/decline lines, volatility indices, and short-term trading indices has drawn limited attention. Although some market indicators have also become popular sentiment proxies in the behavioral finance field to predict returns, the results generally rely on using just one or a few indicators at a time. This approach raises the risk of data snooping, since so many proxies are proposed. We review and examine the profitability of a wide range of 93 market indicators. We give these technical market indicators the benefit of the doubt, but even then we find little evidence that they predict stock market returns. This conclusion continuously holds even if we allow predictability to be state dependent on business cycles or sentiment regimes." [Markets]
Booming until it hurts?
"Those who warn of grave dangers if speculative price increases are allowed to continue unimpeded are right to do so, even if they cannot prove that there is any cause for concern. The warnings might help prevent the booms that we are now seeing from continuing much longer and becoming more dangerous." [Markets]
The FBI pump-and-dump scam
"So the main lesson here is, if you want to run a pump-and-dump scam, the FBI is not a great partner. That or "just don't run a pump-and-dump scam," I guess, take your pick. There are other lessons, though. One is how strangely close this all was to being legal." [Crime]
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