My attempt to move the email delivery of my articles from Feedburner to follow_it has been anything but smooth.  Follow_it decided to require everyone to click a confirm link at the top of my Test post before they could get more articles.  My wife missed that and apparently many others did too.  I’m not happy with the inane ads follow_it places at the end of my articles, and I don’t like the tracking stuff they add to all links in my articles.  I’m seriously considering eliminating email subscriptions on my blog, but I’ll wait a while longer before making a final decision. Here are my posts for the past two weeks: What Might Have Been Seeking Prophets Here are some short takes and some weekend reading: Tom Bradley at Steadyhand asks some very interesting questions.  One good one is “Who is going to buy the flood of low yielding government bonds being issued?”  Another is “Is the political risk around China fully reflected in securities prices?”  I won...

It ain't so much the things that people don't know that makes trouble in this world, as it is the things that people know that ain't so. — Mark Twain. Recently, I was reminded of how difficult it can be to help people with their financial decisions.  What they don’t know isn’t the problem so much as what they think they do know. A young man I’ll call Lucas came to me wondering what to do with a modest sum in employee stock options.  He’s not sure which way the stock market is going, and he’s not sure where his employer’s stock is going.  Is now a good time to sell the options or not? I started by explaining that nobody knows where the stock market or any individual stock is going, and that selling should be based on other considerations, like diversification and needing the money.  I tried to continue with how his best course of action depended on the stock’s price and the strike price as well as the amount involved, but there was little point.  As far as Lucas ...

This is a test post after I tried to fix my blog.  Feedburner is dropping email subscriptions, and I tried to switch them to follow.it.  So, if this worked, emails will look different going forward.  If it didn't work and I broke my feed, I'll have some extra time on my hands.

I’ve let some very lucrative opportunities slip through my fingers over the years.  I won’t call them regrets as I’ll explain later, but I could have ended up with a lot more money than I have now.  Here I describe the top three potential paydays that got away from me. Bitcoin I spent my career as a cryptographer, so it’s not too surprising that I took an interest in the workings of bitcoin when it first appeared.  I learned how it worked and appreciated the clever way it was designed to mimic mining for gold without the need for a central authority.  For a while, that’s as far as my interest went. Later, some enthusiasts formed a group to work on mining bitcoins, and they wanted me to join.  I was tempted, but decided that I had other things to do with my time.  Given the way I tend to get obsessed with technical projects, if I had joined in those early days, I could have mined thousands of bitcoins. When bitcoin prices were manipulated upward to spark the...

Speculation that we’re in a bubble is growing.  I don’t know how to identify bubbles while they’re happening, so the most I can say right now is that the prices of stocks, bonds, and real estate are high.  But let’s suppose for the moment that all three assets are in a bubble.  What are we to do with this information?  Maybe one or more of these assets will crash.  But what if they keep rising for quite a while longer before this crash happens?  What if the economy booms and we grow our way out of the bubble without a crash?  There’s no guarantee that selling assets and waiting for a crash will work out well.  Because I don’t know what’s going to happen, I’m sticking with my investment plan.  The only change I’ve made is to lower my expectations of future investment returns .  So, I haven’t changed the way I invest, but I haven't grown my spending as much as my portfolio’s growth dictates in case future returns disappoint. I managed only...