Commodity prices have been in a long-term downtrend while stocks have soared for much of the past decade. Given that we are twelve years into this bull run in stocks and historically asset class returns have always reverted to the long-term mean, one might ask: is this the time to buy commodities? A major factor Read More
Category: Uncategorized
View from Crystal Bay: A $400 Hot Chocolate Tax?
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
The Endless Search for Yield
As negative yielding global debt breaks a new record by surpassing $17 trillion, investors have never had more difficult conditions in the pursuit of yield, let alone positive yields on a real basis. In this endless search for yield, investors are being pushed further out on the risk curve of investing in high yield bonds and Read More
Frequency Versus Magnitude – The Secret to Successful Investing?
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
Are Divergent Strategies Right for Your Portfolio?
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