Archive | October, 2012

On PB-ROE

Here is an e-mail from a reader: I’m curious about the intercept of the PB-ROE line. In your examples ( http://alephblog.com/2012/02/25/thinking-about-the-insurance-industry/), only life had a negative intercept; the others were all positive. Here’s the implication:  PB = a + b ROE (where a and b are the intercept and slope). If I divide both sides […]

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On Safe Havens and Currency Pair Correlations

I usually think the stuff put out by OANDA is pretty solid, but a post on their blog yesterday definitely fell short of that standard. Using their correlation matrix – which I do think is very useful and which I posted about on Facebook and Twitter not long ago – the author looked to make […]

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Got Cash? (Part 2)

In the first part of this irregular series, I tried to point out the value of having some slack assets should attractive opportunities present themselves. I try to raise cash in my equity strategy as valuations rise.  I try to reduce cash as valuations fall.  It doesn’t work perfectly, but I do think it reduces […]

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Lighten-Up, It’s The Weekend – Pop Culture

My blog is focused on accountants in the U.S.   Sometimes when you are an experienced person working in a professional service  environment, you may not keep up with pop culture. Thanks goodness I have a son and daughter-in-law who are high school teachers. The latest thing they have enlightened me with is the music […]

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