Relative strength-based investing performs best when there is a high level of dispersion between market leaders and laggards. Since the beginning of this year, this has been the case. Semicondutors, software, waste management and computer technology sectors are leading, while oil related stocks are lagging.
Using relative strength-based investing strategies can lead to significant long term market outperfomance compared to ‘buy and hold’ strategies.
With the US economic indicators faltering, everyone wants ideas on how to reduce their invetsment portfolio risk. Here are so ideas, and also a simple analysis of which US sectors are performing well.
I write here to set out my thoughts on the use of life insurance as an investment vehicle, in the Russian context. Clients of all the jurisdictions invariably seek to optimise their tax position in which they operate. This includes holding assets that are so-called passive investments. There is a long history of legal systems Read more ➝
Below we show a correlation matrix of some of the more popular US ETFs. As a reminder, the closer the correlation is to +1 the stronger the positive relationship. And the closer the number to —1 the stronger the negative relationship. How can we use this knowledge? Two ways: Diversification. One of the tenants of Read more ➝
We review common measures of volatility, breadth, volume and investor setiment to determine how much more of a pullback the US markets might witness.
Investors are expecting a decerease in US interest rates this month. Usually, that is bullish for markets when the indexes are near all time highs.
Recently Bloomberg commented on a newly released study by Hendrik Bessembinder regarding how many global stocks that actually perform well. Variations of this study have been done by a number of different academics and practitioners – all with fairly similar conclusions – many stocks are duds. Two years ago, an Arizona State University professor made waves Read more ➝
Humans are irrational—even predictably so. Knowing where clients go wrong, how to identify when they do, and what to do about it doesn’t just allows us to help them overcome their quirks and biases—it can help them boost their bottom line. In an analysis done by Dalbar looking back over the past 20 years, the Read more ➝
Developed markets are more correlated with oil than Emerging Markets. Russia and Gulf states are not as correlated to oil as many investors think.
July starts strong, but often finishes weaker. The week after Options Expiration week – this year starting on the 22nd – can be particularly volatile. July ends the NASDAQ’s best eight months, and starts its worst four months . We will provide notification when the NASDAQ sell signal comes.