Category: Uncategorized

One of the most misunderstood aspects of successful investing is the concept of frequency versus magnitude. If you asked someone to invest in a strategy that loses money 65% of the time, they might think you had lost your mind. However, the preceding information tells you nothing about the efficacy of the overall investment strategy. Read More

Investment strategies can be broken down into two broad categories: convergent and divergent. Convergent strategies assume that economies are stable, investors behave rationally and over time asset prices will “converge” with their intrinsic value. Most assets are invested in and benefit from convergent strategies. Divergent strategies, on the other hand, assume that economies are not Read More

Does the traditional 60/40 stock and bond allocation have a future? Over the last 40 years, bonds have been in a long-term bull market, as bond prices have risen while yields have fallen. Persistently lower interest rates over four decades have not only boosted bonds but have also acted as a tailwind to asset classes. Read More

Recapping my previous post, uncertainty is building as we move closer to the US Presidential election. Many investors are concerned and likely have begun looking for hedges to protect their investment portfolios. With bonds yields at historically low levels, the traditional 60-40 portfolio might not be the best asset allocation going forward. This week I Read More

Investors aren’t limited to only investing in the S&P 500 and the Dow Jones Industrial Average. Every week we share the market trends we are following. We are interested in whether the trends in those markets are continuing or if they are experiencing a temporary or complete reversal. When we identify trends, we are only Read More