Time To Put Money to Work?
Do these markets have you feeling a little crazy lately?I have received lots of emails and calls recently, and while the questions are varied, they can be summarized as: "What do I do?"My usual response is along the lines of: "Develop a policy that you are comfortable with, and apply it with discipline. Then when you are faced...
Alternatives and Rambo Inflation
Inflation is everywhere - from the Marginal Revolution blog:Number of people killed per minute in the Rambo series.Rambo: First Blood (1982): 0.01Rambo: First Blood Part II (1985): 0.72Rambo III (1988): 1.30Rambo IV (2008): 2.59----In an earlier post, I examined how some of the listed alternatives in the US performed on a few down days in 2007. With the...
More Listed Hedge Fund News
Hedge Fund Alert reports that Albion Asset Management of France is launching a new fund in April with $15 million in assets. The fund plans to take positions in hedge funds and FOFs listed on the exchanges in Europe, where roughly 50 funds are listed with almost $20 billion in assets.
Predictably Irrational
Feeling conflicting emotions this morning? I never get tired of behavioral psychology and evolutionary bio books. Here is a new book out by economist Dan Ariely - Predictably Irrational: The Hidden Forces That Shape Our DecisionsHis new blog is here.In a related theme, can you stickk to your commitments? (Founded by another economist and author of Supercrunchers.)----I...
Congress In Session And The Big Get…Bigger?
Invest when Congress is in session? Don't make me laugh. . .Congress in session (Link to original post here.)Here is a website that lists when Congress is in/out of session.The Congressional effect varies systematically with stock investors' (dis)approval of Congress - returns are lowest and vol highest when Congress is in session with low approval ratings.Here is a...
Mean Reversion – When To Buy Japan?
http://www.ebaumsworld.com/mediaplayer.swfThink a market has corrected long enough? Jumping into the market too early can be hazardous to your health. . .I use both mean reverting and trendfollowing (momentum) techniques. One of the problem with mean reversion is that markets can continue in one direction for a loong time (just ask LTCM). One of the studies I...
2007 Returns
Market downturn taking a bite out of your portfolio? A simple diversified approach can help ease the pain.Over the past year I have mentioned a number of portfolio allocations and strategies. Over the next week I will touch on some with resulting performance for 2007:(Also here is a link reviewing some of the "lazy" portfolios.)Individual Asset Classes...
Periodic Table of Investment Returns
Blackrock has a new portal for financial professionals (not sure if it is open to the public). It reminds me of the Ibbotson offering (now Morningstar), but it is free. One cool feature is the ability to create custom periodic tables of investment returns. Here is their sample below:PS If anyone is using the Ibbotson DMS...
What I’m Reading
Listening to the noise and disinformation on Wall Street can be hazardous to your wealth. . .I always find the headlines on Yahoo Finance amusing. Today for example: "Wall Street Sinks on Retail Data". I'm glad they have it all figured out. I would love to see a headline one day "Market down due to...
Dogs vs. Flying Five vs. Net Payout Yield
Is the US Subprime Crisis Any Different? A historical comparison referenced in the Economist article Same As It Ever Was. (Thanks to reader DM for the link.)----100 Hedge Funds to watch.----Flying Five (Link to original post here.)Dogs of the Dow (Link to original post here.)Net Payout Yield (Link to original post here.)Dogs of the Dow is simply to top...
