The efficient-market hypothesis (EMH) requires that investors have “rational expectations,” that on average the population is correct and whenever new information appears, expectations are updated appropriately. Nice theory, but in the real world investors are anything but “rational.” As human beings, we tend to overreact to new information, behaving in an irrationally exuberant or irrationally despondent fashion….
Remember the days when tech gurus boldly predicted that there would be a robot in every home and a robot for every task? Hmm… not so much. Frankly, those early predictions were way too bold. Massive robot armies and a Star Wars-like future are still years away. With that said, the robotics market continues to grow…
If anyone means to deliberate successfully about anything, there is one thing he must do at the outset: he must know what it is he is deliberating about. Otherwise he is bound to go utterly astray. Now, most people fail to realize that they don’t know what this or that really is. Consequently when they…
The U.S. Dollar struck a 7-year peak versus the Japanese Yen in the wake of unexpectedly strong labor data from the U.S. which tended to cement investors’ view of a forthcoming interest rate increase from the Federal Reserve Bank. Last Friday’s release of non-farms payroll data showed 321,000 new jobs were added last month, well above expectations…
As yields across the Treasury complex continue to rise this week – amid desks complaining of no liquidity at all (and following yesterday’s weak auction) – the yield curve (5s30s) has collapsed to 108bps, its flattest since June 2008. 2s30s continues to slide also (at 212bps) almost eerily perfectly tracking the plunge in the curve of…
As natural resources bounced all over the charts in 2014, readers turned to the experts interviewed by The Gold Report for insights on what was driving these ups and downs, and how they could protect themselves—or, better yet, benefit—from the volatility. We combed through interviews with experts featured during the year, and offer some thoughts you might…
The New York and London gold and silver markets have gone into an interesting state, wherein much is claimed, but little is ever allowed to leave. New York and London ought not to be permitted to set prices for the world using the power of the United States Dollar. There will be a Christmas posting later,…
Written by Gary Markets closed early in accordance to Holiday schedules. During the last several minuted the averages suffered a -0.4% drop that recovered 0.2% at the close. Holiday market traffic is hard to judge what is the ‘real flavor’ of the investors thinking. But it was obvious that some investors decided to jump ship at…
As soon as I noticed the unusually high options trading activity in Conn’s Inc. (CONN), I triggered the trade I first discussed on December 12th. On the shortened trading day of Christmas Eve, January call options flew off the shelves in CONN. At the time of writing, the Jan $17.50s saw volume of 3,536 versus open…
