It’s Best Not To Know Too Much On Big Data Day

One big slap for that ego when you find out that financial literacy does not work !

According to this paper mentioned in a Motley Fool post, Why You Are So Bad With Your Money, there is no advantage to being financially literate.

Examples cited in the article.

* soldiers who took a financial literacy class “ended up significantly less likely to have systematic control over their household budgets.”
* High school students who took part in a financial literacy course went on have more problems with their finances than students who skipped the course.

Thus leading to the conclusion that financial education is all but a waste of time ?

It is true.

Knowing too much can certainly impede the decision making process and over confidence in one’s knowledge can lead to contrarian behaviour to disastrous results.

I have never been able to buy bonds because of the occupational hazard of knowing a little more than others about them in general and the fear of not knowing enough sometimes.

Knowing too much creates the opportunity to overtrade and dissatisfaction with one’s trade.

Following the wisdom and madness of crowds and following thy neighbour seems to be a more appealing option.

Today is Big Data Day for America after a 2 week shutdown.

* Change in Non Farm Payroll
* Unemployment Rate
* Total TIC flows
* Construction Spending
* Richmond Fed Manufacturing Index
* Chicago Fed National Activity Index
* Leading Index

Themes This Week

*Analysts are screaming for a market complacently positioned for USD weakness due to Taper adjournment. A strong NFP would kill the positions.
*Ambrose Pritchard is calling for a Euro FR-exit.
* Positioning reports show that Asian currencies are recording the highest net long exposure ever as a percentage of AUM with KRW, CNY, IDR, THB and SGD enjoying inflows.
* Comstock Partners issued a report floating around suggesting that the markets are eerily reminiscent of pre crash 2000 and 2007, ignoring the bad news and presenting no value buys.

Now we know too much on Big Data Day  when all that data is just old news anyway !