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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Gold Isn’t Always A Hedge or Safe Haven: Gold Stock Trends Have Been Even Worse
For several years we often heard investors suggesting to “buy gold”. We could throw in Silver here, too. They provide many theories about how gold bullion or gold stocks are a “safe haven”. I’ve written about the… Read More
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The person who says it cannot be done should not interrupt the person doing it.
– Chinese Proverb Source: https://www.pinterest.com/explore/chinese-proverbs/ Read More
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Stock Market Decline is Broad
We typically expect to see small company stocks decline first and decline the most. The theory is that smaller companies, especially micro companies, are more risky so their value may disappear faster. Below, we view the… Read More
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Low Volatility Downside was the Same
In Low Volatility and Managed Volatility Smart Beta is Really Just a Shift in Sector Allocation I ended with: “Though the widening range of prices up and down gets our attention, it isn’t really volatility that investors want… Read More
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Global Markets Year to Date
This is a quick year to date observation of some global market trends. First, we start with the popular U.S. stock market indexes. The Dow Jones Industrial Average is down -9.6% YTD. S&P 500 is… Read More
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Human judgment, good and bad, will drive investment decisions and financial-market outcomes for the rest of our lives and beyond.
Source: http://www.project-syndicate.org/commentary/will-computer-algorithms-replace-humans-in-financial-markets-by-robert-j–shiller-2015-07#hmXdmoDjMyvHOw9U.99 Read More
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Why Dividend Stocks are Not Always a Safe Haven
We often hear that high dividend stocks are a “safe haven” in market downtrends. The theory is the yield paid from dividend stocks offset losses in their price. Another theory is that money rotates out… Read More
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A Random Walker on Stock and Bond Valuation
Burton Malkiel is a passive buy and hold investor who believes markets are random. To believe markets are random is to believe there are no directional trends, or high or low valuations. He is the… Read More
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Allocation to Stocks and Bonds is Unlikely to Give us What We Want
That was the lesson you learned the last time stocks became overvalued and the stock market entered into a bear market. I believe holding and re-balancing markets doesn’t give us the risk-adjusted returns we want.… Read More
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Where is the Inflation?
In How does monetary policy influence inflation and employment? and bond prices… I pointed out that even the Fed expected their monetary policy to eventually lead to inflation. The problem with economics and economist is they… Read More