Category: Momentum Relative Strength
-
Investment management can take many years of cycles and regimes to understand an edge.
It takes at minimum a full market cycle including both bull/bear markets to declare an edge in an investment management track record. But we also have different regimes. For example, each bull market can be different as… Read More
-
Stock pickers market? Sector rotation with stocks for asymmetric reward to risk
After yesterdays 1.1% gain for the S&P 500, it is back in positive territory for the year. It’s been a very volatile start for 2018 with an abnormally strong trend in U.S. stocks late 2017 continued in… Read More
-
Stock market indexes lost some buying enthusiasm for the day
Buying enthusiasm reversed from positive to selling pressure today after the first hour. I observed notable selling volume at the close, which was the opposite of what I pointed out last Thursday.The S&P 500 Stock… Read More
-
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
-
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
-
What You Need to Know About Long Term Bond Trends
There is a lot of talk about interest rates and bonds these days – for good reason. You see, interest rates have been in a downtrend for decades (as you’ll see later). When interest rates… Read More
-
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
-
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
-
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
-
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