Archive for October 2015

The Friday File: Ever wonder why supermarkets offer sale items with an absurd limit of 12/person? Anchoring bias and arbitrary rationing! Anchoring bias says that just seeing the number 12 in relation to soup will boost demand. Arbitrary rationing (any sort of limit) suggests that the item is selling fast and you should buy. When…

The economy goes through periods of higher and lower inflation and earnings. During these cycles different investments outperform, leading to changing asset allocations. When growth is good and inflation is low, debt and equity generally do well. When growth and inflation are high, equities are generally best. When weakening growth accompanies high inflation, commodities rule.…