Visualization is a key to success in regression analysis. This is one of the (many) reasons I am also suspicious when I read an article with a quantitative (econometric) analysis without any graph. Consider for instance the following dataset, obtai... [Read more...]

A famous finance professor once told us that good diversification meant holding everything in the world. Fine, but in what proportion? Suppose you could invest in every country in the world. How much would you invest in each? In a market-capitalization weighted index, you'd invest in each country in proportion ... [Read more...]

The above graph borders on chartjunk (and is nothing like Paul Butler’s amazing Facebook map). We can see some variation in color but mostly it is a set of lines between 152 country capitals with no means to determine which … Continue reading → [Read more...]