When people find out that I am an economist(dinner parties, my kid's swim meets etc..) , they often ask me about the stock market, or they say something like how they wish they had studied economics so that they could make more on their "investments." As the quarter is coming to a close, you know that ecoonomics is about a lot more than Wall Street and the Dow Jones industrial average. Truth is, I study agriculture and worker's cooperatives - I don't know all tha much about stocks and bonds and high finance. What I do know is that, you can't consistantly beat the market. People are surprised to find out I don't "play the stock market." Sure, I save for retirement, but I use a very booring stradegy of holding an index fund. This week, we are going to look at active trading vs. index funds through the lense of a million dollar bet. This comes from the NPR planet money podcast.
When people find out that I am an economist(dinner parties, my kid's swim meets etc..) , they often ask me about the stock market, or they say something like how they wish they had studied economics so that they could make more on their "investments." As the quarter is coming to a close, you know that ecoonomics is about a lot more than Wall Street and the Dow Jones industrial average. Truth is, I study agriculture and worker's cooperatives - I don't know all tha much about stocks and bonds and high finance. What I do know is that, you can't consistantly beat the market. People are surprised to find out I don't "play the stock market." Sure, I save for retirement, but I use a very booring stradegy of holding an index fund. This week, we are going to look at active trading vs. index funds through the lense of a million dollar bet. This comes from the NPR planet money podcast.
