Month: January 2013 (Page 1 of 2)
The 4 percent rule is widely used to manage retirement withdrawals, but such a static rule does not mesh well with the dynamics of the market.
Simple decision-making rules in complex systems can lead to better risk management and a more robust behavior amidst the chaos.
Optimization can be very beneficial when expectations of what it can accomplish are reasonable. It will never be able to react to drastic paradigm shifts.
Many optimization algorithms exist, each with its own merits and pitfalls. Understanding optimization helps avoid falling prey to data mining in disguise
While relative shifts in return are common, both over short and long periods, relative shifts in volatility tend to persist over a variety of time horizons.
