Irish racehorses and Nobel-prize-winning economists

9282011-details-of-a-horse-racingBob Glass

Tintean readers may have observed that there are four Irish horses contesting Saturday’s  Caulfield Cup.

At the odds quoted, a modest investment in a quadrella would solve your superannuation problems for ever. Whether or not you take the risk depends on how rational you are. Studying form is the rational way: in which case you won’t invest. That doesn’t mean you shouldn’t do it. And don’t look to economics for guidance – see page 20 of The Age of 16 October, which highlights how the two economists sharing this year’s Nobel Prize for Economics reach vastly different conclusions about the rationality of markets.

Readers can interpret for themselves the implications for quadrella investing on Saturday of the words attributed to Burton Malkel about the blindfold monkey throwing darts at newspapers , and experts (I’m neither).

Bob Glass trained as an economist but doesn’t believe that markets always deliver optimal outcomes.