The diversification strategies that what is called modern portfolio theory aren’t so modern anymore, and after almost 70 years, are in need of modernization again. Modern portfolio theory came out all the way back in 1952, in a paper by economist Harry Markowitz. Markowitz ended up winning the Nobel Prize in Economics for this feat […]
Tuesday was not an exciting day for those holding Bitcoin, as it dropped 14% in value in about an hour and a half. Neglecting the trends with Bitcoin can be very expensive. Bitcoin has been on quite a ride in 2019, and is still up well over 100% for the year even after the big […]
The fact that “value” stocks on the whole outperformed “growth” stocks last week shouldn’t really raise any eyebrows, but this sure did. Was this really that interesting? The biggest story last week in the stock market was how “value” stocks outperformed “growth” stocks on the whole. It actually only took a couple of days for […]
When 2018 comes in as a good year for corporate pension funds, and 2019 isn’t a good year at all, we may wonder if the people who run these funds know what they are doing. Many people yearn for the good old days where a lot of people had a pension plan, and especially ones […]
Bank of America Merrill Lynch’s investor position indicator has turned bearish for the first time since January. That apparently means that stocks are bearish and we should buy. There are a lot of different indicators that people look at to look to be shown the way as far as where the price of a stock […]
The lower bond yields of today have some investors and market observers nervous. It turns out that momentum investing works even better with small yield gaps and inversions. Among the people who invest in stocks, some just buy and don’t even pay attention to their positions or their outlook. Their stocks may be tanking, the […]
We might think Bitcoin would be the last thing anyone would use to hedge anything, given its massive volatility. As it continues to evolve, this might not be a crazy idea after all. Cryptocurrencies at least have the potential to hedge other things such as other currencies or stocks, simply because its market isn’t dependent […]
With their flagship iPhone sales in decline, earnings down year over year, and all the concerns about tariffs, Apple stock is still up 30% for the year and 17% since June 1. There is a certain mystique that has always surrounded Apple, which we might even want to quantify as a value-added component of their […]
California’s Pacific Gas and Electric, or PG&E, is the nation’s largest utility. It went bankrupt in January over massive potential lawsuits. Is it worth a gamble now? For whatever reason, California’s wildfires have been particularly brutal over the last couple of seasons. Many believe that global warming is to blame, and if that is the […]
Private equity firms are called raiders by some of people, and when you put raider together with Wall Street, and you hate both, this can produce a lot of fire and brimstone. It is no secret that Democratic presidential candidate Sen. Elizabeth Warren is no fan of Wall Street. This is not a view that […]