Investing

Stock Market Vitals

Gauging the health of the stock market can be tricky. There are so many variables that can be evaluated and spun in different ways to fit a narrative. Market internals are one of the primary ways in which the health of the stock market can be evaluated. They’re objective in nature and less prone to …

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Investing

Factor Investing in a Nutshell

Factor investing, or smart beta, has become quite popular over the past several years. The gist of factor investing is that there are certain company specific variables, or factors, that explain the majority of differences in stock returns. Two now famous academics, Eugene Fama and Ken French, developed a factor model that identified company size …

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Investing

New Highs

You may or may not have heard but the stock market has recently made new highs. There’s no way you missed this news if you pay any attention to the likes of CNBC or Bloomberg. Contrary to what you may have heard, the stock market making new highs is not a bad thing. Often times, …

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Investing

Sentiment: On the Fence

There are two main competing schools of thought that attempt to explain, or account for, stock price movements. The first is the Efficient Market Hypothesis, which in its simplest form theorizes that share prices reflect all available information that might impact a stock price one way or another. As a result, consistently generating returns greater …

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Investing

The Plan

“I love it when a plan comes together.” – Colonel John Hannibal Smith from the A-Team Over the past few months, we’ve discussed various topics as they relate to investing. While useful and informative in isolation, these items are most powerful when combined together in an investment plan. An investment plan should reflect your objectives, …

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Investing

Valuation Cross Section

This post is going to be a little more technical than what we’ve been doing over the past couple of months. I’m not intentionally trying to make it more technical but this particular analysis is a byproduct of some of the other work I’m engaged in currently and felt it was a good example of …

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Investing

The Art of Investing

While golfing with a buddy last week, he asked me to teach him all about investing. Easy enough, right? I don’t know all about investing. Lesson over. Of course, that’s not what he was looking for or expecting. I ended up sharing many of the concepts I’ve been addressing in this blog over the past …

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Investing

Stocks and Time Horizon

As we mentioned in last week’s post, time horizon is the length of time you plan to hold an investment which usually lines up with some sort of event that will require the use of the funds invested. One of the most common of these so called liquidity events is retirement. The asset classes you invest …

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Investing

Time Horizon

In the case of investing, time horizon is how long you expect to hold your investments. It goes hand in hand with diversification and compounding, which we’ve addressed in recent weeks’ posts. Understanding your time horizon and investing according to your time horizon are critical to your investing success. Events tend to drive the investing …

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