Basis Points: A View From the Hills

The Decoy Effect and Risk Tolerance

October 2016

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The Decoy Effect and Risk Tolerance

by admin on October 15, 2016

When given the option to choose between two products or services, consumers tend to focus on the advantages of the two choices relative to their needs. When the consumer perceives their need as small, they gravitate toward the limited service or smaller (less expensive) product. When you insert a third choice or “medium” into the…

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When given the option to choose between two products or services, consumers tend to focus on the advantages of the two choices relative to their needs. When the consumer perceives their need as small, they gravitate toward the limited service or smaller (less expensive) product. When you insert a third choice or “medium” into the…

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AMT – The Other Flat Tax

by admin on September 12, 2016

Steve Forbes ran for the Republican nomination for President in 1996. While not a true single issue candidate, Forbes platform was concentrated on the central issue of scrapping the existing internal revenue code and replacing it with a flat tax of 17%. Forbes was unable to garner significant support in either of his runs for…

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Steve Forbes ran for the Republican nomination for President in 1996. While not a true single issue candidate, Forbes platform was concentrated on the central issue of scrapping the existing internal revenue code and replacing it with a flat tax of 17%. Forbes was unable to garner significant support in either of his runs for…

Read More »

The “Bums” Problem With Bond Indexing

by admin on March 5, 2016

In 1776, Adam Smith penned his opus on the economy. One of the discussions within the work is considered to be one of the earliest references to the law of supply and demand. The law simply states that price is a function of supply and demand. When demand is greater than the supply, the prices…

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In 1776, Adam Smith penned his opus on the economy. One of the discussions within the work is considered to be one of the earliest references to the law of supply and demand. The law simply states that price is a function of supply and demand. When demand is greater than the supply, the prices…

Read More »

Welcome to the Club

by admin on December 15, 2015

Bobby Jones and Cliff Roberts joined together in the 1930’s to turn a plot of land in Augusta, Georgia into the premier golf destination in the United States. Beginning in 1934, the course played host to The Master’s Tournament, which is now considered to be one of the four major championships of professional golf and…

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Bobby Jones and Cliff Roberts joined together in the 1930’s to turn a plot of land in Augusta, Georgia into the premier golf destination in the United States. Beginning in 1934, the course played host to The Master’s Tournament, which is now considered to be one of the four major championships of professional golf and…

Read More »

Campaigns and Capital Gains

by admin on December 15, 2015

Moody Analytics began using a complicated model that looks at the overall economic health and political affiliation of America on a state by state basis to predict the Presidential election winner. As forecasting goes, the model has a fairly short but perfect record. The model has correctly predicted the outcome of each of the last…

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Moody Analytics began using a complicated model that looks at the overall economic health and political affiliation of America on a state by state basis to predict the Presidential election winner. As forecasting goes, the model has a fairly short but perfect record. The model has correctly predicted the outcome of each of the last…

Read More »