Idiocracy and Mean Reversion

With politicians getting involved, it is no wonder people are scared of hedge funds. From AllAboutAlpha:Politicians are - quite rightly - sensitive to “headline risk”. One such politician is New Mexico’s Teresa Zanetti. She tabled a bill in the state legislature at the end of January that would ban hedge fund investment by the $15 billion...

Don’t Wake the Bear Up. . .

Feel like the Big Bear is hiding somewhere? If you're the Nasdaq, he is only 1% away. . .(Painting is "Doubled Back" by Bev Doolittle. If you don't see the bear, click on the picture to open it in another window.)While domestic and foreign stocks have been getting hit hard in 2007, bonds (relatively) and commodities have been...

I am Reading

Happy Birthday Darwin! Or, did T-Rex have a penis?----Evolutionary bio part 2. The Merry Band of Wrigglers.----This business would go under the first weekend in the US.----Jaeger on alternative beta.----A mildly unsafe for work interview (remembrance) with Helmut Newton.----Swensen on keeping it simple. Long time readers know that I am a big fan of his work, but...

When Is The Time To Buy Gold Stocks?

Can something as simple as tracking a commodity give predictive insight into what commodity stocks are going to do? Below I outline an example of the possibilities behind this type of analysis. This line of analysis was originally developed by Jay Kaeppel and published in Stocks and Commodities magazine in July 1993 (Prospecting with Gold Mutual Funds)....

Assets and Defending Them

Think that big acquisition and borrowing a bunch of dough was a good idea? Sometimes your good intentions can work against you. . .(PS A little Will Ferrell V-Day humor here - if anyone can find the video clip please let me know. . .) Here is a link to a great new paper scheduled for publication later in...

Down 40% in 2007? You’re Promoted!

Travel abroad between 1996 and 2006? If you used a credit card, you are due at least a $25 refund according to a recent settlement. And if you're the St. Tropez jetting, Ritz staying, Portillo skiing type (or international biz type), then you're likely owed a lot more. Check out the CCF Settlement page for more...

Always a Bull Market Somewhere

Wheat to the moon. The Agriculture ETF (DBA) not doing so shabby either. (Charts from futuresource and BigCharts, respectively.)

Dentist Chair

Felix Salmon talks about how everyone but the bloggers make money from investment blogs. While he proposes a couple solutions, I think a blog aggregator that shares the revenue with the bloggers would be a good option. Time for me to ramp up the launch of Bloggerator?----Dr. Tatiana's Sex Advice to All Creation: The Definitive Guide to...

Net Payout Yield Screen and Yahoo Pipes

Feel like something big is lurking underneath the surface? (Note: That is a real picture of a real great white shark.)Longtime readers will know that I am a much bigger fan of using Net Payout Yield rather than Dividend Yield as a predictor of excess stock returns. This is a great example of a structural change in...

How to Hedge Your McNuggets

How to hedge your McNuggets? Hire Bridgewater of course!List of the top 10 hedge fund managers.---- Maybe it's just me, but I think the news on active ETFs is a yawner. I don't see much benefit over an active mutual fund. ----Did you know Exxon pays as much in taxes as the entire bottom 50%...