Category: Managed Momentum
Managed Momentum
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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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Why Index ETFs Over Individual Stocks?
A fellow portfolio manager I know was telling me about a sharp price drop in one of his positions that was enough to wipe out the 40% gain he had in the stock. Of course, he had… Read More
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My 2 Cents on the Dollar
The U.S. Dollar ($USD) has gained about 20% in less than a year. We observe it first in the weekly below. The U.S. Dollar is a significant driver of returns of other markets. For example,… Read More
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Asymmetric Returns of World Markets YTD
As of today, global stock, bond, commodity markets are generating asymmetric returns year to date. The graph below illustrates the asymmetry is negative for those who need these markets to go “up”. source: http://finviz.com Read More
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Absolute Return: an investment objective and strategy
Absolute Return in its basic definition is the return that an asset achieves over a certain period of time. This measure looks at the appreciation or depreciation (expressed as a dollar amount or a percentage).… Read More
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Absolute Return as an Investment Strategy
In “Absolute Return: The Basic Definition”, I explained an absolute return is the return that an asset achieves over a certain period of time. To me, absolute return is also an investment objective. In “Absolute Return… Read More
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Diversification Alone is No Longer Sufficient to Temper Risk…
That was the lesson you learned the last time stocks became overvalued and the stock market entered into a bear market. In a Kiplinger article by Fred W. Frailey interviewed Mohamed El-Erian, the PIMCO’s boss,… Read More
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Sectors Showing Some Divergence…
So far, U.S. sector directional price trends are showing some divergence in 2015. Rather than all things rising, such divergence may give hints to new return drivers unfolding as well as opportunity for directional trend… 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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Small vs. Large Stocks: A Tale of Two Markets (Continued)
A quick follow up to my recent comments about the down trend in smaller company stocks in Playing with Relative Strength and Stock Market Peak? A Tale of Two Markets below is a chart and a few… Read More