When a Picture is Worth 1000 Dollars. . .

The first chart is the spread between corporate bonds and 3-Month T-Bills. The second chart is the spread between emerging market bonds and U.S. Three possible plays on tight credit spreads would be to buy AFBIX, or to short LQD or HYG.

Buying the Highs vs. Buying the Lows

Turning your back to all of the available information can lead to false conclusions. . .When it comes to selecting stock factors, I am admittedly agnostic. I constantly remind myself to let the data speak for itself, all while layering in a bit of common sense. I resist the urge to label myself a value guy,...

Q & A on Commodities

Here is a link to the original PDF, "Strategic Asset Allocation and Commodities", and also to the Q&A with Bob Greer from PIMCO. Put your thinking cap on - I am still undecided about a few of the conclusions in the paper. . .(Bolding below is mine).Q: And what did Ibbotson conclude regarding the optimal size of an...

Publicly Traded Hedge Funds in the US?

One can only hope that this is the beginning of a trend. GLRE started trading this week.

A Few Good Quotes From Capital Ideas Evolving

Blake Grossman , "The markets are very efficient, very dynamic, constantly reaching greater levels of efficiency that makes them more and more difficult to beat. The half-lives of our strategies are shrinking"Bob Litterman , "I am not worried that markets are fully efficient - yet. But they are becoming more efficient all the time, and fast. ...

The Endowment Portfolio

It's the Covariance Stupid!There is a great discussion of some asset allocation topics in Bernstein's new book, "Capital Ideas Evolving". (However, the first half of the book I skimmed). In the chapter profiling the Yale Endowment:Swensen describes the process this way: "Mean/variance was a powerful influence in causing us to move away from the standard institutional portfolio....

Badonkadonk and More Books

While idolized in music lyrics, fat tails are to be avoiding in trading systems and investment funds.There is typically little crossover in the hip-hop and country music genres. Trace Adkins made the leap when he penned his chart topping song, "Honky Tonk Badonadonk" in 2005."We don't care bout the drinkin'Barely listen to the bandOur hands, they start a shakin'When...

What is the Best Value Hedge Fund?

You can choose more than one, and if your favorite isn't listed, type it in "Other".Others listed: * Fairholme * Brightline Capital * Tuckerbrook Long/Short Value * Kiefer Total Return Growth Fund * kinetics * Fir Tree *...

More Cross Market-Momentum

A good article in Forbes magazine this month:Surfin' ETFsI have discussed various cross-market momentum strategies on the blog in the past, and you can view two below:Simple Cross Market MomentumCross-Market Momentum Follow Up (with link to the COP Strategy)The Forbes article features a strategy by Robert Colby. He ranks 200 ETFs on 6-month momentum, and forms portfolios of...