In a larger sense, the Fed is already intervening in the oil sector via its zero interest rate policy (ZIRP) and its unlimited liquidity for financial speculation. The problem with financializing a critical sector of the economy is the financialization process transforms it into a systemic risk. The trajectory of every financialized sector is the same:…
Noah Smith has an excellent post which is very critical of something John Cochrane wrote. I added a couple more criticisms in comments Your post is very good as usual. I’d add a couple of things. Cochrane wrote: “With the 2013 sequester, Keynesians warned that reduced spending and the end of 99-week unemployment benefits would drive the…
U.S. stocks found support once again last week and rallied on strong volume. Of course, the main catalyst was the FOMC policy statement on Wednesday that maintained its dovish language with a pledge of considerable time before raising the fed funds rate and adding that it would be patient as it begins the process of normalizing monetary policy. The…
The medical marijuana/cannabis industry has become legalized in many countries around the world and that trend is only gaining momentum. While the last year has been an extreme roller coaster ride for most investors in the cannabis market, we can feel confident that this trend is still at the early stages, well established and on…
Since 2010, the average return of our weekly best scoring ADRs have outpaced the MSCI EAFE by a median 458 bps over the following year, with no turnover. The average ADR score is 48.84, which is above the four week moving average score of 47.72. The average ADR is trading -25.24% below its 52 week…
While there are numerous reasons for recent volatility in asset prices, the market has primarily focused on concerns related to economic weakness in Europe, the possibility of a widespread Ebola outbreak, and the Federal Reserve. The chart below shows the performance of stocks relative to the VIX Fear Index over the past seven months. The…
Taser (TASR – Snapshot Report), with its body cameras and Evidence.com, could easily double in size. MasterCard (MA – Analyst Report) is an old dog learning new tricks in cyber security with its digital tokens. Running length 00:07:30
With the holidays around the corner, not only are retail companies giving discounts, but equities are on sale. This article contains three facts that alone will compel investors to be attracted to the pessimistic, hated, and disgusted mining sector. Mr. Market seems to have drunk too much eggnog. I. Introduction When an equity price goes…
In the past we’ve looked at using a tactical overlay, gold, and commodities to improve an asset allocation strategy. Now we’ll look at the advantages of a 10% allocation to a Long/Short fund and a 10% allocation to a Market Neutral fund to consider their roles in constructing and managing an asset allocation strategy. First…
