It’s March and that means basketball. This year is a bit odd in that the entire NCAA Men’s Basketball tournament is being played in Indiana and to make matters worse my alma mater, Indiana University, isn’t even in the tournament.
However, a record nine Big Ten teams made the final 64 so all should be ok, right? Not exactly!
Either these nine teams were grossly over rated, or the Big Ten teams had the worst seedings possible or both. Eight of the nine teams were beating in the first two rounds. Thankfully, Michigan came back to win against LSU, and we have at least one representative of the Big Ten in the final sixteen. Now folks that is embarrassing!
So, in my embarrassment, not just for the Big Ten but for my now long-suffering Hoosiers, I set to work to figure out what was wrong with Big Ten Basketball.
How could so many strong teams be eliminated so quickly?
My unscientific conclusion after watching several games was that the Big Ten lacked 3-point shooters and was too focused on the inside 2-point game.
Here is how the game has changed, according to Teamrankings.com, the average team shoots 37.7% from 3-point range while only 33.47% from 2-point range. Why on earth if those stat lines are true would you ever shoot a 2-point shot again?
Now we know why? If all you shot was 3-point shots defenses would adjust and cut it off completely. However, the 3-point shot opens up the lanes and the middle of the court. This allows the centers and forwards to dominate inside at an even higher shooting average. One works to help the other!
So, what does this have to do with wealth management?
Answer – a lot!
We have 3-point shots in finance that have better odds than shorter 2-point shots just like in NCAA Basketball. The clearest are the following:
I am sure this is just the tip of the iceberg as far as odds go, but their what come to mind immediately!
Let me know if you can think of any other 3-point shots in personal finances that defy the odds!