Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /home/calcul9/public_html/wp-content/themes/suffusion/functions/media.php on line 580

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /home/calcul9/public_html/wp-content/themes/suffusion/functions/media.php on line 583

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /home/calcul9/public_html/wp-content/themes/suffusion/functions/media.php on line 586

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /home/calcul9/public_html/wp-content/themes/suffusion/functions/media.php on line 589

Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in /home/calcul9/public_html/wp-content/themes/suffusion/functions/media.php on line 592
Are Stocks Really Less Risky in the Long Run? » The Calculating Investor
A Wealth Track Interview with Lubos Pastor

Lubos Pastor is a popular finance professor at the University of Chicago Booth School of Business.

In this interview, Professor Pastor challenges the conventional wisdom, popularized by Jeremy Siegel and others, that stock market risk decreases at longer time horizons.  He also has some interesting comments on human capital, diversification, and market efficiency.

In my opinion, Pastor’s argument about risk and horizon is a bit subtle, and it is difficult to convey in this type of an interview.  I’ve included a few links for those who want to explore this idea more thoroughly.

Original Pastor-Stambaugh Paper

Fama-French Discussion of Pastor-Stambaugh Result

Previous blog post on shortfall probability with equity premium uncertainty

Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

(required)

(required)