As investment advisors, traditionally we have taken an approach to investment oversight which assumes that 401k participant investors are rational investors. “Loss aversion” bias suggests otherwise. The following paragraphs will outline an approach which places the participant’s aversion to loss at the center of fund evaluations to help protect the plan sponsor from potential fiduciary…
Broadly speaking, as markets recovered from mid 2009 (amid extreme monetary policy experimentation around the world), economic growth and asset prices were in sync around the world. When markets faltered after the end of QE2 in 2011 and the Fed folded on moderation, investors around the world piled into US equity and credit markets chasing the…
TASER International (TASR – Snapshot Report) If I could name a single town that rose from obscurity in 2014 that would have to be Ferguson, MO. The Ferguson issue was as divisive as it was fascinating. There were so many issues at hand and the entire episode brought to the forefront many problems we have in this…
The end of 2014 marked the 23rd anniversary of the dissolution of the Soviet Union and the establishment of the Russian Federation. Like Chinese leaders in the previous decade, Russian policymakers faced the challenge of integrating their nation into the global economy. Russia’s trade openness (exports and imports scaled by GDP) grew from 26% in…
Oil prices remained near five-and-a-half year lows in early Asian trading on Wednesday after prices saw yet more heavy falls in the previous session and analysts said a supply glut meant that more falls were likely before a rebound. Global oil markets on Tuesday slumped for a fourth straight session to five-and-a-half year lows as mounting…
In our Weekly Market Update we have made an effort to track the deflationary story being told in the global fixed income markets, specifically sovereign yields have continued to trade lower defying what most investors thought was possible; Swiss 10 year debt recently yielded 25 basis points. A while back I quoted a Seth Klarman…
Markit’s US Services PMI missed expectations of 53.7, priting at 53.3, its lowest since Feb 2014 (mid Polar Vortex). From record highs in June, PMI has plunged non-stop for six months leaving Markit noting Q4 growth is looking more like 2.0% than the 5.0% exuberance in Q3. US Services PMI plunges… and along with the tumble…
Exxon Mobil (XOM – Analyst Report) probably has the best chance of not just emerging from the downturn in oil victoriously, but also come out bigger and stronger than ever before. It’s not one of those fly-by-night E&Ps that may or may not make it out alive. We’re talking about one of the largest, most profitable corporations in…
I write about the small cap biotech space often on Real Money Pro, SeekingAlpha and as editor of Small Cap Gems. One of the frequently asked questions I get is what do I look for when identifying and purchasing “off the radar” small cap stocks, especially in the biotech sector. This is probably due to the…
There are always negatives and positives in the stock market. However I see more negatives. We have had 5 straight losses, institutional selling, strong sell off in the Russell yet defensive shares like Utilities are holding up. Watch this video in order to better your trading.. Video length: 00:03:49
