“Not everything that can be counted counts, and not everything that counts can be counted.”

So often in the investment business, we look for answers in quantitative models. Systemic risk is 19.2 — time to hedge! Systemic risk has fallen to 7.9 . . . Phew, we can all breathe easier now! Alas, if only it was so simple. There is a quote, often and perhaps erroneously attributed to Albert Einstein, “Not everything that can be counted counts, and not everything that counts can be counted.” Apocryphal or not, it’s true in all walks of life and certainly true in evaluating systemic risk.

Source: Systemic Risk: You’ll Know It When You See It

Human Capital as an Asset

I recently read a post on the teachings of Benjamin Franklin by Tren Griffin at 25iq.  A great article about one of the most fascinating people in history.  In the section about important lessons Franklin taught us was the axiom “an investment in knowledge always pays the best interest.”

An overlooked part of most people’s assets is the role of human capital in their lifetime earning ability.  Many people view education as a means to secure a job, when really it should be looked at as an asset that is carried with you throughout your life.  Your ability to earn a living is the most important determinant in the standard of living you will have during your working years and into retirement.

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Stock exchanges are devouring each other because no one buys individual stocks anymore – Quartz

Stock exchanges are devouring each other because no one buys individual stocks anymore

Source: Stock exchanges are devouring each other because no one buys individual stocks anymore – Quartz