Academic Identity
I am assistant professor of Sociology at Barnard College. My book (and my dissertation research) is a comparative study of technology and futures trading, an ethnography of open outcry and electronic traders. My current research is on how art specialists price cultural commodities, particularly how categories and commensuration work in the secondary/resale fine arts market. I teach courses in economic sociology, organizations, and gender.
Professional Identity
I occasionally consult, focusing on organizational change, the future of technology and financial markets, and environmental markets. I do strategic assessments of markets, technology and organizational design, with qualitative and quantitative components. If you are interested, please email me.
Personal Identity
I grew up outside Chicago, and went to school(s) at Wesleyan University, USC, and Northwestern University. I currently live in New York, with a partner who is a marketing manager for an educational nonprofit. I love movies, like to cook, and I can do a mean lindy swing out. I am INTP.
October 27, 2008
public baselining – stock market and CAPM
Filed under: Markets — Peter @ 12:00 pm
One of the truly underappreciated effects of the Capital Asset Pricing Model (CAPM) is that it created a “whole market” baseline against which really large numbers of people began benchmarking returns.
And the historical returns of the US stock market has been around 10% since 1929.
So there is a massive amount of expectations-generation around that 10% return benchmark. This expectation creates incentives to keep innovating NOT as a way to increase the availability of credit, or allow more people to buy homes, or to generate more GDP output, but to generate returns above 10%. All of those other reasons are justifications for financial innovation, not instigation for it.
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