Scot Wick Blog

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 27 of 36 Basic Tools of Finance Section 10 of 14 … One way to choose twenty stocks for your portfolio is to pick them randomly. There is a reason random choices won't give you a bad result. The reason is the efficient markets hypothesis. … The first aspect of the efficient markets hypothesis is each company on a major stock exchange is closely followed by many money managers, who use sophisticated computer programs. These money managers constantly monitor news and update fundamental analysis to determine each company’s stock value. Their job is to buy what they evaluate to be undervalued stock and sell overvalued stock. … The second aspect of the efficient markets hypothesis is the equilibrium of supply and demand sets the market price. The number of any company’s shares at any time offered for sale equals the number of shares people want to buy. At a stock’s ...

  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 27 of 36 Basic Tools of Finance Section 9 of 15 ... Figure 3 – The Trade-off between Risk and Return When people increase the percentage of their savings invested in stocks they increase the average return they can expect but they also increase their short-run risks. … Here we consider three aspects of risk aversion 1· insurance markets 2· diversification 3· risk-return trade-off … 3-Risk-return trade-off In financial decisions, the most relevant trade-off is between risk and return. There are short-run risks inherent in holding stocks, even when the portfolio is diversified. Risk-averse people are willing to accept these risks because they are compensated in the long-run for taking them. Over long periods of time stocks have given much higher return rates than other financial assets, including bonds and bank certificates of deposit. Over the past two hundred y...

  Fumiko Scot's information: Weight at 166 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 168. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, able eat good food and get enough exercise. Now spend most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on back to Staine...

  “The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents wou...