IMPORTANCE OF INVESTING LOOKING FORWARD – NOT IN THE REARVIEW MIRROR
Is it a good idea to drive your car looking in the rear view mirror? Probably not, unless you want to get in an accident. Why then do many people invest their money the same way – looking in the rear view mirror at performance? The answer is grounded in hindsight bias. People adapt to […]
Finding Value in a Growing Industry
In one of our recent market updates, we discussed that commodity prices are at historically low valuations. Energy, in particular, is one area that is trading at cheap valuations. When most people think about energy, they think of oil and how much they are paying at the pump. While oil does make up a […]
G-20 SUMMIT MEETING THIS FRIDAY AND SATURDAY – THE REAL FIREWORKS THIS JULY?
If you listen to the talking heads, the big news at the G-20 summit is President Trump’s meeting with Vladimir Putin. Although this meeting is important, the media, in our opinion, is missing the real story. That story is what will happen between Chancellor Merkel of Germany and President Trump. Merkel wants to talk about […]
IT’S THE CHEAPEST IN 40+ YEARS!
Are we talking about stocks or bonds? Neither, we are talking about commodities. Investors usually think about stocks and bonds as the only two investment choices for their portfolio. This type of thinking causes investors to miss out on other investment opportunities (like Business Development Corporations which we discussed back in 2015) that can enhance […]
IF YOU PLAN ON BUYING A CAR SOON, A BETTER DEAL MAY BE ON THE HORIZON
Which saying is more appropriate: “Time heals all wounds” or “Those that forget history are bound to repeat it”? In 2008, individuals were highly leveraged and woke up after the Great Recession with a desire to get out of debt. My, how quickly things can change. Household debt recently eclipsed its 2008 peak. Is this […]
SHOULD INVESTORS LISTEN TO THE MEDIA FOR INVESTMENT ADVICE?
As we all know, the media loves to hype up stories because the hype creates bigger audiences. At about this time into the Obama administration, the media was hyping the rise of countries like Brazil, India, China and South Africa (the “BRICS”). Many talking heads also encouraged investors to invest in these “rising” countries. Over […]
SELL IN MAY AND GO AWAY – A FLAWED APPROACH!
The media loves to hype up anomalies in the market and there are two many of us are hearing now. We believe investing based on these anomalies is a flawed approach. Let’s look at both the “Sell in May and Go Away” trading strategy and the Presidential Election Cycle anomaly. We would argue that market […]
LACK OF CASH – WHY THE MARKET IS SLOWING DOWN
Investors can learn a lot about the securities markets if they understand the dynamics that occur at an auction. When an auction has very few people in attendance (or there is limited cash available to purchase the items on auction), prices tend to be depressed because of a lack of competitive buying. On the other […]
THE FEDERAL RESERVE RAISES INTEREST RATES AND GOLD RALLIES. WHY?
The Federal Reserve (“Fed”) raised interest rates yesterday. According to many pundits, that is bad for gold prices. Get out now while you can!! This is consistent with the misconception many people have that higher interest rates are always bad for gold. Despite this sentiment, gold rose by 1% on Wednesday. Why – because the […]
Why the Federal Reserve May Keep Rates Low as Inflation Rises
After the “Great Recession”, US households carried a lot of debt and were hurting economically from that burden. One of the reasons the Federal Reserve (“Fed”) decided to initiate its quantitative easing program was to ease this burden on households while at the same time propping up the general economy. Households benefited by refinancing their […]