Insights

Some positive data on the economy

According to data from Deutsche Bank and Google, much of the world has returned to levels of mobility that were comparable to those prior to the epidemic (at least on a population-weighted basis). Two thoughts: It may suggest global growth will return to normal earlier than thought. It's possible that individuals are getting used to … Continue reading Some positive data on the economy

How to Get a Grip on Mass Psychology in the Financial Markets of the World 

"Over and over and over again," investors have historically followed the same psychological path.  In the financial markets, where investment frenzies can build up and then erase billions of dollars from investors' portfolios, as was the case during the internet stock bubble of the 1990s and the real estate bubble of the mid-2000s, mass psychology … Continue reading How to Get a Grip on Mass Psychology in the Financial Markets of the World 

Gravity is the one thing stocks and bonds have in common 

Prior to 2000, when the Fed began cutting rates to save the markets, equities and treasury bond interest normally went in opposite directions. It wasn't until around 2000 that stocks and treasury interest began to move in lockstep in the same direction. Source: Lance Roberts, Real Investment Advice  _________________________________ If the Fed simply ended its … Continue reading Gravity is the one thing stocks and bonds have in common 

eBook

Suppose you are like many investors … you have lived through at least one financial crisis. I lived through the 2000-2002 stock market downturn as an investing strategist responsible for the investing advice of 6,000 investment advisors. In the 2008-2009 crisis, I was an investment manager responsible for managing $30 billion in investment assets. A … Continue reading eBook

The flaws with the most widely used approach to investing

Standard asset allocation practice ("strategic asset allocation") produces unstable investing results. Strategic asset allocation is based on modern portfolio theory. Modern portfolio theory is derived from a research paper written by Harry Markowitz. In his paper, Markowitz describes two stages. “The first stage starts with observation and experience and ends with beliefs about the future … Continue reading The flaws with the most widely used approach to investing