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 

A Week on Wall Street

The market was speculative, but the Fed is tapering bond purchases, futures are predicting three rate hikes, and inflation is surging. There are concerns about a lack of breadth in the markets as of late. During late-stage bull markets, investors take on a lot of leverage to chase returns. Margin debt may fuel the bullish…… Continue reading A Week on Wall Street

Current Asset Allocation

Stocks with low CAPE values result in higher returns and vice versa. The long-term view of the stock market reflects extended periods of surge and stall. These periods, known as secular bull markets and secular bear markets, are not optical illusions; rather they are extended periods when market valuations (i.e. price/earnings ratios: P/Es) are either…… Continue reading Current Asset Allocation