THE GEORGE JARKESY SHOW WELCOMES SPECIAL GUESTS, CULLEN ROCHE OF PRAGMATIC CAPITALISM AND JIM DORN OF THE CATO INSTITUTE. MARC LICHTENFELD ALSO JOINS THE SHOW FOR THE STOCK WATCH SEGMENT.
Pragmatic Capitalism (http://pragcap.com) was founded by Cullen Roche in the midst of the financial crisis of 2008. Mr. Roche foresaw many of the events that led up to the crisis and felt that the government was slow to react and when it did finally react, responded with the wrong medicine. While also providing relevant news and indicators the website remains very much a sounding board in which the various authors (and readers) can voice their opinions on markets, economics and public policy. In addition to regular commentary by Mr. Roche the website is a collaborative work from many different financial experts.
Mr. Roche is the founder and CEO of an investment partnership. His primary areas of expertise include global macro portfolio construction, quantitative risk management and behavioral finance. Prior to establishing his own business, Mr. Roche worked at Merrill Lynch Global Wealth Management where he helped oversee $500MM+ in assets under management. Mr. Roche is a Georgetown University alumnus, growing up in the DC area and now living in Southern California.
Research & Methodology
All research used at Pragmatic Capitalism is based on a top down investment approach. The research and market methodology is based on cognitive science and the theory of chaos. Through the understanding of market psychology you can derive that markets are non-linear dynamical systems which are susceptible to inefficiencies. Markets are inefficient in short time periods due to their chaotic nature (a symptom of human psychological irrationality). This creates opportunity.
Based on this methodology we employ risk management structures that account for the possibility of short-term inefficiencies and random occurrences within large and liquid systems. Although there are short-term opportunities in markets, risk management is the overriding factor in achieving high absolute returns. Black swans cannot be predicted, but they can be avoided by employing proper risk management. This analytical, quantitative and systematic approach helps us in achieving our goal of high absolute returns.
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James A. Dorn is the vice president for academic affairs, editor of the Cato Journal, and director of Cato’s annual monetary conference. His research interests include trade and human rights, economic reform in China, and the future of money. From 1984 to 1990, he served on the White House Commission on Presidential Scholars. He has lectured in Estonia, Germany, Hong Kong, Russia, and Switzerland and has directed international conferences in London, Shanghai, Moscow, and Mexico City. Dorn has been a visiting scholar at the Central European University in Prague and at Fudan University in Shanghai and is currently professor of economics at Towson University in Maryland. He has edited 10 books and his articles have appeared in numerous publications. Dorn holds a Ph.D. in economics from the University of Virginia.
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MARC LICHTENFELD – STOCK WATCH
Marc Lichtenfeld is the associate investment director of the Oxford Club and editor of the Ultimate Income Letter, where he runs the Perpetual Income Portfolio. Marc is also the founder and editor of the “Oxford Systems Trader.” Prior to joining the Oxford Club, he was a sell-side analyst for the contrarian Avalon Research Group and a senior columnist for TheStreet.com. Marc is often featured on national media including WSJ.com, Marketwatch, and National Public Radio. A featured speaker at investment conferences, he has spoken about dividend investing at meetings all over the world. Marc is also the only published financial analyst to have ring announced world championship boxing and mixed martial arts on HBO, Showtime, and ESPN.