Mauboussin also talks about how the media can affect investment decisions, saying that the coverage by stock pundits often can amplify trends. He refers to a study that was done with magazine cover stories, noting that "when the cover was really bullish and a company had done really well, not surprisingly because reversion to the mean, they tended to do much more poorly in subsequent periods. Likewise, if they had a negative cover story, they tend to do much better subsequently."
Has the financial crisis made us more risk-averse? The S&P 500 has been down for the last ten years, so anybody that invested in that time has lost money. "That doesn’t feel good. So what people do is they either put it in cash and or cash balances are really high in America, or they buy bonds, right, fixed income, a little bit more boring, less racy, but it's equivalent to having the dollar in your pocket."
Universities claim to prepare students for the world. How many actually do it?
- Many university mission statements do not live up to their promise, writes Ben Nelson, founder of Minerva, a university designed to develop intellect over content memorization.
- The core competencies that students need for success—critical thinking, communication, problem solving, and cross-cultural understanding, for example—should be intentionally taught, not left to chance.
- These competencies can be summed up with one word: wisdom. True wisdom is the ability to apply one's knowledge appropriately when faced with novel situations.
This is what the world will look like, 250 million years from now
To us humans, the shape and location of oceans and continents seems fixed. But that's only because our lives are so short.
A new study may help us better understand how children build social cognition through caregiver interaction.
Researchers at UT Southwestern noted a 47 percent increase in blood flow to regions associated with memory.
- Researchers at UT Southwestern observed a stark improvement in memory after cardiovascular exercise.
- The year-long study included 30 seniors who all had some form of memory impairment.
- The group of seniors that only stretched for a year did not fair as well in memory tests.