Weekend Reading for 3/17/2017

Weekend Reading for 3/17/2017

Invisible Alpha Blog

Maewyn Succat Day

It would be blasphemous of me to bore you with finance on a day that we honor a man who devoted 30 years of his life to teaching and helping the Irish.  Rather than interrupt your quiet reflection, beer drinking, and NCAA tournament watching, I’ll send you into the weekend with some fun facts related to St. Patrick’s Day.  Enjoy the celebration…

  • St. Patrick’s real name wasn’t Patrick, it was Maewyn Succat.
  • Today, over 13 million pints of Guinness will be consumed worldwide.
  • St. Patrick’s father was a deacon.  Not because he was religious, but because of the tax incentives.
  • Arthur Guinness’s beer became popular for two major reasons; it wasn’t dirty water and it wasn’t gin.
  • Leprechauns are the cobblers and bankers of the fairy world.
  • Jennifer Aniston’s first movie was Leprechaun.  Its budget was less than what Aniston would later make for just one episode of Friends.
  • There is a corporate tax strategy known as the “Double Irish with a Dutch sandwich.
  • If you manage to find the pot of gold at the end of the rainbow, it would probably be worth about $430,000.  Don’t keep it.  Trade it back to the leprechaun for 3 wishes.  Wish for world peace, $100 billion, and three more wishes.

Chart of the Week

I’m sure you may have heard somebody say something along the lines of, “Well bond yields aren’t what they used to be.”  That’s true.  When compared to yields in the previous three decades, interest rates are incredibly low.  It’s important to keep things in perspective, though.  Bond yields may be low relative to recent memory, but historically, as the chart illustrates, yields have fallen back into a normal range. (h/t @billsweet)

Source: PIMCO: Rising Rates: Dispelling the Myth

3 Good Reads

The WishList I Made After My Wife Almost Died (Carl Richards)

“Over the following weeks, as it became clear my wife was going to be O.K., my thoughts started to shift from the regrets I would have had at the end of her life to what regrets I might have at the end of my own. “I bet I’ll wish I spent more time with my family,” I thought. That I did more climbs in the Tetons. That I took more creative risks at work. That I had been more kind. I’ll wish I took more time to listen to, laugh with and hug my children.”

The Death of Amateur Bracketology (Tadas Viskanta)

“The NCAA basketball brackets are experiencing the “paradox of skill.” Not unlike in the world of investing. In investment management, the overall level of skill has dramatically increased over the past 50 some years. As a result, the variance in outcomes has declined. The paradox is that now luck plays an even bigger role in relative results.”

What’s the Best Way to Get Invested (Elm Funds)

“Once you determine the allocation that’s right for you, how should you go about getting there? Most people who ask this question probably already know that cold logic dictates that we should immediately make the adjustment and move our allocation to the optimal point. An incremental adjustment over time, i.e. ‘averaging-in,’ is not financially optimal. However, averaging-in does provide a psychic benefit for those of us (most of us) that are predisposed to seeing the glass as half full when it comes to our past decisions.

Enjoy your weekend!

Tim Brennan

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