Investing

Volatility

Stock market volatility can appear to be quite complex to most of us. The concept itself at a high level actually isn’t that complicated. Once you attempt to measure volatility, price it and/or trade it is where the complexity arises. In its simplest form, volatility is a measure of the dispersion of returns of a …

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Investing

The Bond Sunset?

Bonds have become less attractive in many corners of the investment markets in 2020 as rates have dropped to historically low levels. As a reminder, bonds can produce returns in two forms: 1) the interest they pay which is a product of the yield or rate they offer and 2) price appreciation. Historically, most investors …

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Investing

Deviating

I briefly discussed the concept of robust investment portfolios in my previous post. I emphasized the importance of having sufficient humility to acknowledge we’re unable to predict the future and to have an imagination that recognizes there are a lot of possible outcomes that we don’t normally and naturally consider. Basically, we need to be …

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Investing

Being Robust

I’ve spent quite a bit of time thinking about the concept of being robust over the past six-plus months, both personally and professionally. Google and other online dictionaries define robust as strong and healthy, vigorous. Additionally, I think of robust as resilient and able to withstand the unexpected, similar to Nassim Taleb’s concept of anti-fragile. …

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Investing

Electioneering

We’re in the two months leading up to what’s sure to be a controversial election no matter who wins. I’m thinking this might be the most controversial election of my lifetime. Even more so than the 2000 election. With the extremists on both sides of the aisle, I get the feeling there’s going to be …

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Investing

Market Concentration

There continues to be quite a bit of consternation over the rise in stocks and how the majority of gains are concentrated in a few names within the indices. The disagreement between fundamentals and price action also continues to be a point of concern. While I can’t justify the current disconnect, the trend continues to …

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Investing

The Rising

So unless you’ve been living under a rock this year, you know that gold has had a pretty remarkable run. It’s outperformed stocks and bonds across the board. Gold, referred to as a barbarous relic by some, has its lovers (gold bugs) and its haters. Gold doesn’t produce cash flows like a typical security does …

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Investing

Reality Check

The stock market keeps going up and it likely will for the time being until expectations turn negative. We’ve discussed the expectations that appear to be driving the market right now. Namely, the Federal Reserve has investors’ backs. If things get too dicey, the Fed will step in and serve as an artificial price floor. …

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