Category: Asymmetric Investment Returns
Asymmetric Investment Returns is a risk and reward profile with more upside profit than downside risk or loss.
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Markets aren’t driven by averages
Markets are not driven by averages but by human perceptions of gains, losses, and risks, which are distorted under pressure, as explained by Prospect Theory. Investors exhibit risk aversion in gains and risk-seeking during losses,… Read More
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Asymmetric Risk/Reward is More Than Just Buying Undervalued Stocks
Many investors believe they are pursuing asymmetric opportunities when they buy stocks they think are undervalued or have more upside than downside. But true asymmetry isn’t just about perceived valuation gaps—it’s about structuring risk in… Read More
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Bridgewater Co-CIO: The Market is Very Asymmetric Right Now
Bridgewater Associates, Inc.Co-CIO Karen Karniol-Tambour joins Positive Sum CEO Patrick O’Shaughnessy at the 2023 Sohn Investment Conference. Below is the interview she says the market is very asymmetric right now because of the asymmetry between… Read More
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We Could Strangle the VIX!
According to Cboe, the objective of a strangle is to capture the volatility premium inbedded in option prices, but with less risk than in a straddle, another established premium capture strategy. We shared this observation on… Read More
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Trend Following Natural Gas and Heating Oil
Nat gas, short street name for Natural Gas, has crashed since December. I discuss it in: Trend Following Natural Gas and Heating Oil Read More
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Nothing Changes Investor Enthusiasm Like a Price Trend
Investor sentiment is trend following. Investors get more bullish as stock prices trend up, and more bearish as the stock market trends down. Read More
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The stock market trend is being tested
The stock market is now reaching its first short-term higher probability of a countertrend pullback. The S&P 500 stock index tapped its 200-day average and reached a short-term overbought level based on relative strength and… Read More
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The stock market is at an inflection point
The S&P 500 is stalling as if there is resistance at this price level, and there’s a lot of potential supply for those in a loss trap. It’s also getting overbought as measured by the… Read More
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After Selling Pressure Drives Stock Price Trends to a Low Enough Level, We’ll See Sentiment Shift
Once the stock market catches a break and trends up enough, we’ll probably see short covering keep it going for a while. The percent of stocks trading above their 50 and 200 day averages is… Read More