If you start with the hypothesis that the price of stocks should represent the overall economy, maybe it’s not so strange that you would try to blame someone when you are proven wrong. There’s no question that economic crises and bear markets with stocks can happen together, and it’s actually pretty unusual that we see […]
It’s not that the Nasdaq has hit another bear market or anything, and the 1.1% that this index dropped this week is not even meaningful. The bears are really taking notice though. People seem to be paying a lot of attention to the Nasdaq this week, given that the other two major indexes, the S&P […]
It should not come as a surprise to anyone that investors allow their political biases to influence their investing views and decisions. We need to understand what biases we have. People struggle enough with trying to figure out what they should be doing with their stock portfolios to want to make this task even more […]
Facebook is no stranger to controversy, and in spite of all the attacks they have endured, they always managed to bounce back. They even brush off widespread boycotts. If you build a better mousetrap like Facebook has, and your mousetrap works amazingly well in practice, you can stand to take a few jolts here and […]
When an investment really doesn’t grow much and you are down to dividends to make money, your dividends better be good. REITs have been cutting them, but the bleeding may have stopped. People love to invest in real estate, and naturally prefer investing that is easy over more difficult and complicated means like actually buying […]
Stock indexes are neither created equally nor are necessarily designed to be representative of stocks in general. People want them to be, but they need to wonder why. Whenever we refer to how stocks in general or the stock market is doing, we refer to the performance of stock indexes, baskets of stocks assembled by […]
AI company CrowdSmart is looking to build a better mousetrap by seeking to quantify industry consensus surrounding investments. The crowd isn’t always so smart though. What we call artificial intelligence certainly has its place, and the sheer processing speed and capacity of today’s computers can accomplish feats that would be far from possible otherwise. The […]
We don’t even consider beating 99% of your peers with a fund even meaningful, if your peers are weaklings. Eddie Brown’s small cap fund takes them all on though. At first glance, seeing remarks like a fund beating a high percentage of its “peers” has us grimacing a little, feeling bad for all those investors […]
Technical analysis is supposed to be belief-neutral, where the data itself tells the story as it unfolds. The idea of a technical analyst preparing us for a reversion to the mean is just odd. Technical analysis is an evolving field in the study of the movement in prices of assets, stocks for instance, that does […]
Some very old ideas about investing have been dying a slow death for many years, losing ground in a survival of the fittest. Their weakness is being even more exposed now. Charles Darwin’s portrayal of the evolution of biological species being a matter of the survival of the fittest is an idea that applies well […]