Where Nobel Economists Put Their Money

I don't know if I'm gonna get answers to this one but the second question is your asset allocation what are you in if you won't give us percentages anyway that's the question I have a global index fund that all-in expenses are 8 basis points 8 basis points all in expense that's a very small amount for a total expense and to get a world portfolio and so I have that I have tips as you know I've got one hedge fund until 8 months ago I had commercial real estate I might as well disclose that it was CIA real estate fund which I went into for reasons and I just got very nervous because the real estate fund was kind of going up every day like a bank account I mean it was except with a very nice interest rate and I think that's value on the basis of appraisals so I just got nervous that maybe mark the market might be a good thing to be aware of in times when you're not sure so that's why I got out of commercial real estate I had some instable bonds oh yeah that was another one I said well I've got Massachusetts municipal bonds and I know Massachusetts not going to go broke well any case as we know Miss parodies are in great deal of trouble I don't know what bankruptcy law is for municipalities but I worry that they're going to see the only way out is what the airline's took and decide the only way to get out of the labor contracts is to go bankrupt Bob you're asking the wrong question of of me I have never paid any attention if you ask me what whatever assets I have what the allocation is now I only honest answer I could give you as I haven't the vaguest idea and if you had asked me that question at any time in the past 60 years I could have given you exactly the same answer except at the there must have been a point in time when I had zero assets and and then I knew perfectly well but then of course it didn't matter your asset allocation no current your suggested asset allocation is still 50/25/25 well I'll tell you the most important question that vexes the minds of people like me on the Finance Committee of the National Academy of Sciences is the following the evidence is overwhelming that a thousand timers try to buy when stocks are low and sell when they're high is a damnably awful record and it isn't so hard to sell but you don't know when to get back in and typically things move very very fast in normal cycles when they when they go back what should you think when somebody has wise as Alan Greenspan says this is a once in a century event should you still in that case take in no sale at all and that's a very hard decision

Channel: BUToday

Views: 37,984

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Keywords: BU, Today, Boston, University, Investing, Nobel, Prize, Economist, Robert, C., Merton, Solow, Paul, Samuelson

Id: -HrTD5J2qP0

Length: 3min 44sec (224 seconds)

Published: Wed Oct 29 2008