Probably Everything You Need To Know About Bear Markets

10%= correction, 20%= bear market. I know these arbitrary numbers sometimes seem silly, but when looking at the data, you have to draw the line somewhere. Get over it, let’s move on. The S&P 500 has been in a drawdown for the last eight months. Stocks are currently 9.2% below the highs made in May…

The Biggest Loss Ever

The S&P Biotechnology Select Industry Index (XBI) just experienced its worst drawdown ever. The 38.9% decline since July of 2015 (slightly worse than the fall in 2008) is unlike anything these investors have ever witnessed. While the carnage going on in these stocks is ugly, these charts only show the losses over time, as if there is not…

WILL WE EVER GO GREEN?

Investors haven’t had much to be excited about through the first week of 2016. At no point has the S&P 500 been positive YTD. If this were to continue for the rest of the year, it would be the fourth time that this has happened since 1928. Those years were 1962, 1977 and 2008, or…

The Foot Bone’s Connected to the Leg Bone

What happens to markets and the economy when the Federal reserve raises rates? This has dominated all financial news for most of the last two years. Of course, in the real world where everything is interconnected, if-then statements are utterly useless. Wilbur Wright, in McCullough’s fantastic The Wright Brothers, nails this concept when talking about…

The Known Unknowns

Well that was an exciting day to start the new year. The S&P 500 (SPY) opened down 1.66%, fell another 0.95% and then rallied 1.2% into the close. When all was said and done it fell 1.4%, making today the worst opening day since 2008. While it may be interesting to look back at what opening…

What If You Only Invested In Stocks When They Were Cheap?

Nobody likes to overpay, whether it’s for food, clothing, a house, or stocks. The problem is people don’t treat stocks the way they do a car, groceries, or jeans. If a cucumber goes from $2 to $10, you wouldn’t say “wow, I need to buy some before it goes to $20.” You would simply substitute…

My 2015 Favorites

  Wow, this year went really fast. It feels like just yesterday that the Fed finally decided to raise rates. I wanted to share some of my favorite things from 2015. Podcast: I am lucky to be able to help Barry prepare for Master’s in Business. Some guests I’m more excited about than others. I would…

Momentum Investing Predates the Civil War

“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again” – Jesse Livermore Long before Cliff Asness wrote his dissertation on momentum, Alfred Cowles and Herbert Jones discovered that stocks tended to move in…

In a Tight Range

As we await for the inevitable(?) first rate hike since 2006, let’s take a moment to review what type of year it’s been for U.S. Stocks. The S&P 500 has done a whole lot of nothing this year and currently is up just 0.04%. Looking at this minuscule number helps clarify what we already know,…