The Signal and the Noise (Part 4)

By | 2017-07-17T12:21:17+00:00 June 15th, 2017|Global Market Update|

We’ve talked about cutting out noise. Can we boost the signal, too? Oscilloscope. Illustration: Brian Elliot. Source: Wikipedia Looking at a signal-to-noise ratio is a good way to understand why we get so distracted. It’s the proportion in our lives of meaningful information compared to irrelevant data that bombards us all the time. It’s like the level of a radio station’s programming above the static background. And there’s a lot of noise in our lives—diversions that make it hard to hear what’s important. So, [...]

Signal or Noise?

By | 2017-07-17T12:34:36+00:00 November 12th, 2013|Global Market Update|

Are you getting signal or noise? That’s what investors need to ask when they evaluate their portfolios. The “signal-to-noise” ratio is an engineering concept that compares the useful information received to false or misleading data. Everyone should want more signal and less noise. Noise is static on the line: the more you have, the harder it is to make effective decisions. So how do you raise the ratio? First, focus inward. What do you want your investments to accomplish? If they’re there to help [...]