Wealth of Nations

A friend sent me this interesting report by Credit Suisse on the global wealth.

It's impressive how having more than USD 10,000 is enough to put you ahead of 3 billion people (67.6% of the world).

Luck or Skill? Paulson & Co. edition

I've just read on the FT that John Paulson (who made billions betting on falling US housing market prices in 2008) has warned of 25% redemptions in his $30bi AUM fund, following losses of more than 40% so far this year.

My MSc. dissertation was on whether technical analysis can generate abnormal returns or it is onlu due to "luck"- i.e. out of many possible combinations you are bound to find one that will have excellent results.

I usually use Warren Buffet as an example during my classes on market efficiency but maybe Paulson will be interesting as well. Maybe his profits back in 2008 were simply luck and shouldn't be expected to persist in the future?

The Size of the Greek Problem Over Time

The image says it all: