In 1949, investing legend Benjamin Graham eloquently characterized the cyclical nature of financial markets in his book "The Intelligent Investor":"The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. " Normally, social mood waxes and wanes positively and negatively. Thus, sentiment waxes and wanes in the form of dynamic cycles. Mood … Continue reading Sentiment points to an imminent trend reversal in US stocks →

The U.S. stock market is very concentrated. There were a few months where the top internet stocks underperformed, but that ended in January. Alphabet's (GOOG) (NASDAQ:GOOGL) massive gain after reporting earnings punctuated the move. Alphabet stock is up about 40% in the past 6 months. The recent gains in these stocks have led to a … Continue reading Concentrated risk →