Does it really matter when a bull market begins? Whether you measure it from the low in 2009 or when new highs were made in 2013, isn’t this just semantics? Bull markets are in the eye of the beholder, and when we mark the beginning is of little importance, unlike things like earnings and valuation…
These Are the Goods
Articles Mix a little data with something you want to be true and you grab it with both hands By Morgan Housel Chart goodness By Tadas Viskanta If you can’t save money, your investment returns won’t matter. By Nick Maggiuilli Mean reversion is probably one of the most misunderstood concepts in all of finance. By…
Who’s Warren Buffett?
“Who’s Warren Buffett I asked?” That’s what George Goodman (“Adam Smith”) said to Benjamin Graham when he was asked to work on a new edition of The Intelligent Investor. Adam Smith's SuperMoney is the book that introduced the world to an obscure money manager from Omaha. pic.twitter.com/BZ8mMdt4jS — Michael Batnick (@michaelbatnick) January 12, 2017 George…
What Are Your Thoughts?
I think an NFL team can be turned around quicker than an NBA team. There is more parity in the NFL than the NBA. There are 3 or 4 NBA teams that can win the championship next year, there are a dozen NFL teams that can conceivably win the Super Bowl. You tend to see…
Animal Spirits: What Worked On Wall Street
On this week’s Animal Spirits, Ben and I discuss Facebook’s (2x) giant loss Twitter also had a rough day after earnings Being 30 What worked on Wall Street These funds don’t want your money Gen X FTW We’re all above average (survey) According to the U.S. Highbush Blueberry Council (survey) The race to zero State Street’s…
Making a Market
One of the concerns that people have expressed over the rise of index investing is that it will prevent true price discovery, if it isn’t doing so already. With fewer and fewer people doing fundamental research and more people only acting as price takers, at what point do prices truly separate from the economic realities…
Contrarian Indicators
March 15, 2013. CNBC ran an article with the headline Mila Kunis rotates from cash to stocks. In it, the author wrote, “Her words sparked a lively response on Twitter. Financial Acrobat, a trader, consultant and tweeter of financial news, warned that it could be a contrarian signal. ‘When people like @FoxonStocks and @RealMilaKunis start…
These Are the Goods
Articles You could own a hundred funds and be concentrated in one risk factor or you could own five funds and have a healthy balance of risks By Phil Huber Claiming that Apple’s iOS keeps Google honest is the same as if Toyota, after putting all car companies out of business, professed that Boeing keeps the…
No, No, No
No, the S&P 500 is not a momentum fund. When Netflix was added to the S&P 500 in December 2010, at $10 billion, it represented 0.08% of the index. Today, 1200% later, Netflix has grown to 0.65% of the index and is now the 33rd largest component, behind Pepsi and Disney. With this example and…
They All Fall Down
Yesterday Facebook had a market capitalization of $602 billion. Today it’s $500 billion. A 20% decline in one day hurts, a lot, but this is type of move happens from time to time in the strongest stocks. Even after today, Facebook is still up 500% over the last five years. One common theme amongst the…
