Another Week, Another Warning
As the cyclical bull market that started in March 2009 has ground on, it seems that every week we’ve had warnings about its imminent end. On Friday, Market Watch columnist Michael Sincere weighed in with “Seven Signs We’re Near A Top”. To save you a click, here is a sample of Mr. Sincere’s analysis: (more…)
If the monthly chart of the COMP is to be believed, 4% is the ‘reward’ side of the risk/reward equation in tech stocks. COMP could gobble that up in 3 days.
In my last post (“A New Approach To Portfolio Construction“), I showed a couple examples of Portfolio Armor‘s new portfolio construction tool in action. You may recall our approach there in broad strokes:
- Find securities with the highest expected returns net of their hedging costs (high “net expected returns”) at your particular risk tolerance.
- Hedge them. (more…)
A New Approach to Portfolio Construction
Hey Fellow Slopers,
Last month, I posted here about a new feature we were working on at Portfolio Armor (“The Hedged Returns Approach”). In that post, I mentioned a couple of problems with typical, long-only, unhedged portfolios: (more…)
What more needs to be said? The stock market has been inflated along with the unsavory likes of Junk Bonds and many other ridiculously over valued items in this phase of ‘risk ON’ speculation. 3 Amigos of ‘risk OFF’ are also shown on the chart.
(Links to Part One – Two – Three )
If there’s one gauge a great many are convinced is “The” gauge as to whether or not a company, person, idea, or anything else is relevant, along with the equivalent powers of a sorcerers stone: It’s the phenom of social media. Along with the metrics used by the companies responsible for it. (more…)
What Has Been
A solid 2.5 years of risk management (to varying degrees) has been required of precious metals investors. It was most intensely required after the announcement of QE3, when the net commercial short position in silver began a relentless march toward a very bearish alignment in late 2012 and then the HUI Gold Bugs index lost an important support level at around 460. Here is the chart of silver with a heavy commercial net short position from NFTRH 215, dated 12.2.12: (more…)