Category: Investor Sentiment
Investor Sentiment is about investor behavior and their oscillation between fear and greed.
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Conflicted News
This is a great example of conflicted news. Which news headline is driving down stock prices today? Below is a snapshot from Google Finance:: Trying to make decisions based on news seems a very conflicted… Read More
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Asymmetric Nature of Losses and Loss Aversion
Loss Aversion: “In prospect theory, loss aversion refers to the tendency for people to strongly prefer avoiding losses than acquiring gains. Some studies suggest that losses are as much as twice as psychologically powerful as… Read More
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“It is impossible to produce a superior performance unless…
source: http://www.templeton.org A great quote from my fellow Tennessean, Sir John Templeton: “It is impossible to produce a superior performance unless you do something different from the majority.” – Sir John Templeton Read More
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US Government Bonds Rise on Fed Rate Outlook?
I saw the following headline this morning: US Government Bonds Rise on Fed Rate Outlook Wall Street Journal – “U.S. government bonds strengthened on Monday after posing the biggest price rally in more than three months… Read More
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Dazed and Confused?
Many investors must be dazed and confused by the global markets reaction to the Fed. I’m guessing most people would expect if the Fed signaled they are closer to a rate hike the stock and… Read More
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Fed Decision and Market Reaction: Stocks and Bonds
So, I’m guessing most people would expect if the Fed signaled they are closer to a rate hike the stock and bond markets would fall. Rising interest rates typically drive down stocks along with bonds.… Read More
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Illusion of Control
“The illusion of control is the tendency for people to overestimate their ability to control events; for example, it occurs when someone feels a sense of control over outcomes that they demonstrably do not influence.”… Read More
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This is When MPT and VaR Get Asset Allocation and Risk Measurement Wrong
I was talking to an investment analyst at an investment advisory firm about my ASYMMETRY® Global Tactical and he asked me what the standard deviation was for the portfolio. I thought I would share with… Read More
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“There is always a disposition in people’s minds to think that existing conditions will be permanent …
“There is always a disposition in people’s minds to think the existing conditions will be permanent,” Dow wrote, and went on to say: “When the market is down and dull, it is hard to make… Read More