Archive for the 'Economic Theory' Category

About the effect of economic theory on capital markets …

Stock buybacks are bad for investors: Further evidence

In the working paper “The Buyback Monitor - July 2009: Corporate Stock Buyback Profits of 273 Firms from 2000 into 2009“, published on the Social Sciences Research Network, M.A. Gumport, CFA, provides further evidence that stock buybacks are not as good for investors as often touted. The following is quoted from the abstract of this […]

Adam Smith and the Pope vs. the Harvard Business School

On June 29, 2009, Pope Benedict XVI issued the encyclical “Caritas en Veritate” that dealt directly with capital market operations. Here are some citations from this encyclical: Besides requiring freedom, integral human development as a vocation also demands respect for its truth. The vocation to progress drives us to “do more, know more and have more in […]

Wall Street Journal debunks “Common Stock Legend”

On July 11, 2009, in a column by Jason Zweig, the WSJ asked, “Does Stock-Market Data Really Go Back 200 Years?” Here are some quotes from this article: […]

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