According to the WSJ in an article this morning entitled “Balanced Funds Tilt Toward Stocks, While Investors Want to Scale Back”: “Among fund managers with the flexibility to invest in a mix of stocks, bonds and other assets, the trend has been stocks, stocks and more stocks. According to the latest data available from fund […]
If you listen to the radio or watch TV you will see a ton of commercials telling people to buy gold because it never goes down, it is a safe haven, etc. Gold is A safe haven asset, but it is not THE safe haven asset. Sometimes during a crisis money will flow to Gold, […]
Regular readers of our newsletter know that we have been calling for a retest of the 1100 low we made on the S&P 500 last month. As I write this the S&P 500 futures are at 1111 (close is good enough in horseshoes, grenades, and stock market levels). Our readers might also remember that we […]
Just read an article in the WSJ talking about how after months of high forecasts for the year end value of the S&P 500 Wall Street Analysts are now cutting them back. What is funny is why this matters. If we can’t predict where the market will be in 10 minutes how can we predict […]
S&P Could Fall 20%, 2-Year Treasury Hit 0%: Analyst Ever wonder why the public doesn’t trust Wall Street? Merrill Lynch’s technical analyst is predicting the market could crash. If you think that could happen then it would make sense to move to cash but Merrill doesn’t make any money if you just sit in cash, […]
Just watched as much of a video interview with Jack Bogle from Vanguard as I could stand. He is responding to claims from Mark Cuban that diversification and buy and hold don’t work. Bogle of course built Vanguard on the idea of indexing, buy and hold, and diversification. He had the advantage of timing as […]
Momentum and Market Inflection Points It is great to see a modern portfolio theory shop like Morningstar admit that momentum beats the market handily over time. Of course you then would expect them to try to find all the flaws in the data. No investment strategy is perfect. No investment strategy will work in every […]
Overheard: Surreal Collateral . Another reason why we think it will take a long time to fix the European problem.