Financial Economics

Avoiding Home Bias

If you need evidence that a globally diversified approach to investing still makes sense (in the long run), check out this excellent graphic from Fortune magazine:

http://fortunewallstreet.files.wordpress.com/2011/12/global_hot_spots_map_large.jpg

(It indicates stock index returns from 2001-2011)

Disconnect between the Real Economy and the Financial System

http://www.realclearmarkets.com/articles/2011/12/16/finance_now_exists_for_its_own_exclusive_benefit_99422.html