The recent explosion in equity market volatility has left investors and traders stunned by the magnitude of the gyrations in virtually all segments of the market. One of the most violent movers has been the VIX Index and the corresponding ETFs that attempt to track its direction. Click to read the entire article that appeared …
Continue reading “Trading Volatility ETFs: Respect the Roll”
When it comes to investing, most of us are familiar with the various “style boxes” popularized by Morningstar: Small, Medium and Large capitalizations paired up with Value, Blend and Growth equity attributes. There is a multitude of investment vehicles and options to provide investors exposure to any of the various different combinations. Click here to …
Continue reading “Factoring the Differences Between Quality and Value”
It is no secret that the energy sector has been under tremendous pressure over the last several months. It’s hard to imagine that the fundamentals could get much worse: * The domestic supply overhang of crude oil has brought prices back down to their March lows. Crude oil futures are down nearly 30% over the …
Carl Icahn recently made some comments at the CNBC Delivering Alpha conference about the High Yield market: “More importantly, they are overpriced, because if you go down and look at the index — and now I could get into some arcane stuff, but what a lot of these guys do, including BlackRock and the others, …
If recent statements by Janet Yellen are any indication, it appears that the Fed is finally going to start raising interest rates in the next few months. That news is music to the ears of many investors who have had their assets parked in money market mutual funds generating a hefty 1 bp of return …
Continue reading “Waiting For Money Market Funds To Pay Interest? Think Again”
The US Equity market is at historically extreme valuations and a 40% correction is about to occur… No. Wait. I meant to say that the US Equity market is fairly valued and should continue to deliver returns that are consistent with long-term averages… Actually, no, the US Equity market is still relatively cheap and should …
Continue reading “US Equity Market: Evaluation of Valuation”
The bond market bears are roaring again. The pundits are out in full force, announcing that the fixed income market has finally reversed direction and yields are going to start their inevitable march higher on a path to “normalization.” These predictions are often accompanied by advice to sell your bond portfolio before it melts down …
Many investors are looking for a way to express a long position in crude oil to coincide with the view that the current supply glut will be worked off over the remainder of the year. The best way to express this view is to buy USO, the $3 billion ETF which trades an average of …
Continue reading “Crude Awakening: Why a Long Oil Position Could Ruin Your Portfolio”
There is nothing like a sudden drop in the price of a particular security or sector to evoke the primitive “fear and greed” emotion ever present in an investor’s psyche. Any rapid revaluation justifiably launches us on a search to comprehend what triggered the volatility and why we failed to foresee the decline. We have …
Continue reading “3 Ways To Tell the Difference Between Value and a Value Trap”
Let me start by saying that I am not one of those perma-bears that constantly warn that another stock market crash is around the next corner. In fact, I think the equity market is likely one of the better places to invest over the next 1-2 years, given the other alternatives currently available. Click here …
Continue reading “What the Next Bear Market Might Look Like”
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