When markets decline—especially after long periods of sustained growth—the familiar advice resurfaces: “Be patient. Stay invested. Ride it out.” The rationale? The market always goes up over time. But there’s a critical flaw in this narrative. Your portfolio and a portfolio benchmark are entirely different things. And portfolio benchmarking, or the constant comparison of your […]
In July 2007, just before the financial crisis erupted, Citigroup CEO Chuck Prince summed up Wall Street’s dangerous exuberance: “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” Eighteen years later, Wall Street is […]
On May 6, 2010, the US stock markets dropped nearly 10% within minutes. What would be called a “flash crash” wasn’t caused by news, economic data, or a Fed policy decision. According to the U.S. Commodity Futures Trading Commission (CFTC), a large sell order on E-Mini S&P 500 futures, executed by a mutual fund and […]
Retail speculation is once again gripping the markets. A recent Wall Street Journal article highlighted how the latest retail gambling vehicle—zero-days-to-expiration (0DTE) options—has exploded in popularity. According to CBOE, trading volumes in these contracts have surged nearly sixfold over the past five years, with retail traders now accounting for more than half of all transactions. […]
Few are as candid and historically accurate as hedge fund manager Kyle Bass when identifying structural breaks in the global economy. In a recent interview, Bass painted a grim but telling picture of China’s economic condition, warning: “We are witnessing the largest macroeconomic imbalances the world has ever seen, and they are all coming to […]
A static approach to investing is not enough. While long-term strategies remain foundational, flexibility in execution is key to preserving wealth and maximizing returns. That’s where tactical asset allocation comes in. Tactical asset allocation is a hands-on investment strategy that allows advisors to actively shift portfolio allocations based on changing market conditions. It’s not about […]
In 2023, the “Magnificent Seven” (NVDA, META, TSLA, AAPL, MSFT, AMZN, and GOOG) became a popular nickname for the seven largest stocks by market capitalization. “Magnificent” was used because these stocks led the S&P 500 higher throughout the year. These same stocks had a strong showing again in 2024, as all seven were among the […]
Investing is as much about mindset as it is about markets. When volatility strikes or headlines spark fear, even experienced investors can fall prey to emotional decision-making. Selling too soon, buying too late, or abandoning a plan entirely. These responses often do more harm than good. That’s where a risk managed investment strategy can make […]
A couple of years ago, I wrote about absolute versus relative returns. Given the latest market run, I am getting a lot of questions about chasing returns, and individuals comparing themselves to the S&P 500 index. Historically, trying to beat a benchmark index leads to poor outcomes. However, understanding absolute and relative returns can help […]