Created by Wolfgang Beyer with the program Ultra Fractal 3. – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=321973 I’m currently reading Benoit Mandelbrot’s brilliant book The Misbehavior of Markets: A Fractal View of Financial Turbulence (TMM). In it, Mandelbrot makes a case for discarding the bell curve when modeling financial markets, the bedrock of modern financial..
Category: market commentary
Image by Luiz Jorge de Miranda Neto- Luiz Jorge Artista from Pixabay 2021 sure picked up from where 2020 left off. As if things couldn’t get any crazier than a global pandemic, a group of retail investors seemingly organized an epic short squeeze in GameStop Corp’s stock (GME) so violent that it bankrupted a $12.5..
Image source Universal Studios via Wikipedia I often feel like the financial markets are crumbling around me. It’s not their price levels that trouble me, but their health. The capital markets are a tremendous boon to humanity. However, intrusive central bank and government policies seem to increasingly strangle the golden geese of capitalism and free..
Image by Leonhard Niederwimmer from Pixabay “It’s up to you New York, New York” — Frank Sinatra, Theme From New York, New York The magnitude of change that the coronavirus (COVID) ushered in is truly astonishing. It’s upheaved industries, professions, and the very fabric of many lives. Among the apparent victims is New York City..
Image by Omni Matryx from Pixabay These are truly fascinating times to be an investor. Markets seem to be going through a generational phase shift, and not necessarily for the best. I see a culture that is leading itself away from prosperity and towards the abyss, and I’m helpless to stop it. My emotions run..
Image by Mira Cosic from Pixabay No matter how you slice it, markets are human. This even applies to the “algos” as it’s we who write their mechanistic marching orders. Thus, understanding human behavior can be helpful in assessing and anticipating market moves. There’s no choice in the fact that we all need a philosophy..
Image by 272447 from Pixabay 2020 is certainly not shaping up to be the year I had hoped for. Like many, I was optimistic at the start. I underwent some major surgery late last year and 2020 was going to be “my year.” Boy did those plans derail quickly. In the blink of an eye,..
Image by Free-Photos from Pixabay Passive investing has eaten active management’s lunch for decades. Its market share has grown steadily, capturing disproportionate amounts of inflows and allocation changes. Backed by scores of academic research, passive investing is pitched as a way to earn market returns with drastically lower fees. Why pay up for active managers..
Image by the Centers for Disease Control and Prevention These are truly remarkable times in the investment markets. The speed, intensity, and ubiquity of this selloff brings just one word to mind: violence. It would be remarkable if it wasn’t so destructive. Sadly, the reactions from our politicians and the public were predictable. The Federal..
Image by Steve Bidmead from Pixabay When it comes to investing it’s never different this time; nor, however, is it ever the same. This difficult-to-navigate paradox creates a scarcity of longevity. Today’s persistently low yield environment has upped the ante and put many marquis names out of business. To be fair, alpha’s been elusive of..