How does the effect of our expected returns change over time?  This is not academic  curiosity, we want to know in the context of our portfolio if we can.  And we can — we visualize the effect of expected returns in situ. First step The idea is to look at the returns of portfolios that have the constraints we want and also have a high expected return.  Each of those is paired with a portfolio that  has the portfolio constraints but no constraint on expected...

A semantic confusion leads us to use the word market to describe both the process which puts food on our table and the activity of gambling in credit default swaps. Perhaps the “something nicer” which should replace capitalism is a more nuanced – and more accurate – account of capitalism itself. The sentences that surround those two are “Capitalism need not be about greed and gambling”. Previously A couple of book reviews are: Review of “Obliquity” by John Kay and...