Category: Tactical Asset Allocation
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Why So Stock Market Focused?
Most investors and their advisors seem to speak mostly about the stock market. When they mention “the market” and I ask “what market?” they always reply “the stock market”. Why so stock market centric? It… 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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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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Absolute Return as an Investment Objective
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. Absolute Return as… 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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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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“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
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The Mistake is Not Taking the Loss: Cut Your Losses and Move on
One of the keys to managing investment risk is cutting losers before they become large losses. Many people have difficulty selling at a loss because they believe it’s admitting a mistake. The mistake isn’t taking… 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