Past century return of having a house: no [real] change return. Effectively with maintenance and repairs, unless you like the house, the return is negative. It’s a money losing position. It’s a form of forced savings.
Good times for booms. Bonds are up, SP is up, housing prices are up.
Financial Markets Course, 2 weeks ago, sign up any time for free. “Coursera”: company involving a number of universities (40k signed up). Last time 8k w/ certificate and failed 350. Shorter than lectures at Yale.
How jobs are going to look like 50 years fwd?
people living longer and earning less (because fat ↓).
Plan? Risk management
Finance & Insurance is all about facing uncertainty
It’s not about beating the market, it’s about managing risks
Finance is an important technology: spread a venture with low probability of success among an array of multiple investors.
It’s a matter of intelligent risk management, is not a subject of wealth, that emerging markets develop.
It’s not the emerging world who’s threatened for cosmopolitan globalization. It’s rather the ones that live in the 1st world and don’t have a sense of the world, of what’s really going in the rest of the planet.
P/E ratio used as valuation as well as we used to use salary for determining a loan paying capacity for individual clients.
Robert Shiller says that generations from now on will have to live managing risks smartly.
Risk Mngt is not about being smart.