Category Archives for "DIY Investing"

Weekly Market Scorecard – June 24, 2017

market scoreboard

Highlights The post-election rally is still intact, but losing steam. The S&P 500 is up 14% since the election The Dow, S&P, and NASDAQ are all making new highs. Investor optimism is still high, but starting to waver a bit. A correction of 10% or so would probably be good for this overstretched market.   […]

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Barron’s Highlights In Less Than 2-Minutes

Highlights from Barron’s newspaper dated June 5, 2017.  See online edition here ($) Introduction For the serious investor, Barron’s weekly newspaper is the single best financial publication out there. It is comprehensive, inexpensive, and focused on a single topic: the financial markets. Each issue is loaded with specific investment ideas. These ideas can come from […]

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The Greater Fool Theory

dilbert

One of my favorite TV shows in recent years is HBO’s The Newsroom. The guy who writes the show, Aaron Sorkin, is known for fast-paced, snappy dialog. In the final episode of season 1, economics reporter Sloan Sabbith (played by the lovely and talented Olivia Munn) tells her boss, anchorman Will McAvoy (played by Jeff Daniels): […]

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A Little Tough Love for Stock Pickers

george plimpton detroit lions

Do you consider yourself a member in good standing of the community of amateur stock pickers? If so, you best be a truly exceptional one because if you’re not, the road ahead of you is going to be unpleasant. Maybe you’ve already learned this, or maybe you’re still in denial. Either way, you’re eventually going […]

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A Sector Rotation Stock Screening Algo That Actually Works

Stock-picking algorithms come in many flavors, most of which appear at first glance to be quite appetizing, but in the end are not very pleasing to the palate. But there is a small subset of these factor-based strategies that do produce gastronomical delight. What follows is a sector rotation stock screening algo that actually works. […]

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Characteristics of highly accomplished investors

skill

What do Warren Buffett, George Soros, Carl Icahn, Ray Dalio, Abigail Johnson, James Simons, Thomas Peterffy, Ron Perelman, and Steve Cohen all have in common? They are all highly accomplished investors. And they make up 9 out of the 10 richest Americans, according to Forbes, Inc. Introduction The fact that 9 out of the 10 […]

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The Top Momentum Stocks (and how to trade them)

I have written a few articles recently, about factor-based investing. As I’ve pointed out, momentum is one of the oldest and most enduring animals in the Factor Zoo. But what exactly is momentum? Is there a specific definition, or is momentum open to interpretation? If you were to pose this question to a quant trader […]

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How to Increase Your Odds of Winning at the Investment Game

How to Increase Your Odds of Winning at the Investment Game Summary Stock market strategy can be understood using game theory. The players in this game have widely different skill sets. Profits flow from low-skilled players to those with better skills. Every investor has a strategy, even if that strategy is “I just go by […]

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Are You Paying For Useless Advice?

smart beta wizard

Are you paying for useless advice? False experts, the “Hot-Hand Fallacy”, and the “Law of Small Numbers.” Can people be fooled into believing in a non-existent expert? If so, will they then pay for what can only be described as useless advice about future chance events? The answer is yes, and this type of misjudgment […]

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