Gold Myths Luring Investors Into Risk
In case you haven’t heard, precious metals, particularly gold, have risen sharply this year. Of course, whenever any asset class experiences a more speculative melt-up, investors are quick to rationalize why “this time is different.” In stocks, it is about […]
The Most Dangerous Era In History
We live in what Brett Arends claimed as “The Dumbest Stock Market In History,” but I believe it is potentially the most dangerous era. That phrase is not hyperbole as it reflects structural distortion, extreme valuations, and an investor base […]
Speculative Bull Runs And The Value Of A Bearish Tilt
The recent market crack certainly woke up the more complacent bullish investors. Of course, the complacency was warranted, given the recent market surge, conversations about โTINAโ (There Is No Alternative), and how โthis time is different.โ But that is what […]
The Psychology Of Investing In A Zero-Risk Illusion
Every market cycle eventually changes investor psychology to believe risk has been conquered. The storylines may change, from โthis time itโs differentโ to โthe Fed has our back,โ but the psychology does not. When markets rise steadily and volatility remains […]
ChatGPT Gives Financial Advice On Volatile Markets
Following Friday’s selloff amid the resurgence of tariff threats on China, I asked ChatGPT a simple question:ย ” How to Stay Calm In The Stock Market?” That simple question generated an engaging and humorous take on financial advice for navigating volatile […]
Bear Market Losses – A Dangerous Illusion
When bear market losses occur, headlines talk in percentages:ย โThe market dropped 20โฏ%.โย Investors nod. A 20โฏ% decline sounds manageable, historical, and expected. As Ben Carlson recently penned: “Bear markets have some symmetry to them, at least in the short-term. In the […]
RSI (Relative Strength Index): Timing The Next Correction
In the world of technical analysis, there is one reliable indicator for measuring market risk. The relative strength index (RSI) measures overextensionย (in either direction). Developed by J. Welles Wilder in 1978, the RSI is a momentum oscillator. As such, it […]
Markets: Bullish Vs Bearish Case
Just recently, Scott Rubner of Citadel Securities wrote an excellent piece discussing the bull versus the bear case for the markets. You look at the markets today and see a tension between expectation and reality. On one hand, equitiesโespecially tech […]
Why Diversification Is Failing In The Age Of Passive Investing
Diversification has been the backbone of “buy and hold” strategies for the last few decades. It was a boon to financial advisors who couldn’t actively manage portfolios, and it created a massive Exchange-Traded Funds (ETFs) industry that allowed for even […]