Why relying on averages is dangerous given our fate is often determined by extreme events and how we react as financial markets, the economy and our own lives evolve. Photo by William Beem In this episode you’ll learn: How times ensures only the best ideas survive.Why we should focus on tail risk.Why are reaction to actual events as time passes is more important than the average expected outcome of multiple scenarios. Show Notes If it's Tuesday, it's a workday in … [Read more...]
161 Plus: Monte Carlo Analysis, Quant Funds and Interest Rate Hedged ETFs
This week June 17, 2017 on Money For the Rest of Us Plus we run some scenarios using Portfolio Visualizer's Monte Carlo Analysis to get a sense of whether the results are accurate and can be trusted. We also look at what are quantitative strategies. Finally, we compare an investment grade corporate bond interest rate hedged ETF with a short-term corporate bond fund. … [Read more...]