Tag: volatility

Pondering Investment Themes After The Russian Invasion

Image by linsenfutter2016 from Pixabay So much for returning to normal. I had hoped that easing COVID restrictions would supercharge economic growth this year. Many affected industries and markets were rebuilding and reopening to a backlog of robust demand. Sure, markets had issues to grapple with: inflation, changing central bank policies, and the return of..

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Rising Rates And Volatility Might Create Future Opportunities

Image by QuakerGirl22 from Pixabay Catching inflection points is the holy grail of trading. It’s what makes investing lore. From shorting the 2005 housing boom or skyrocketing technology stocks in 2000, to classic value investing, taking contrarian positions can create large profits and legendary reputations. While seductive, it’s a difficult way to trade over the..

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Trading Time As A Fractal Experience

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..

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Using GameStop To Uncover Biases

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..

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How I Process Ideas Into Investments

Image by MustangJoe from Pixabay Investing is incredibly hard. Mapping observations to security price movements is complex to say the least. Often, the relationships governing these moves are unknown. Yet, this is the investor’s task. I’ve used this blog as a tool for exploring some of these connections. It’s been incredibly rewarding. Not only has..

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Collateral, Leverage, & Volatility: The What, How, & When To Invest

Image by Peter Kaul from Pixabay There’s nothing like a crisis to bring foundational investing principles to the fore. They lay all my triumphs and tribulations bear for me to see. Evasion is no longer possible. Assumptions, rationalizations, and truths are crystallized as profits and losses. This turbulence, though, is a crucible for learning. For..

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Investing On Persistent Foundations

Image by David Mark from Pixabay The volatility in the investment markets over the past few months has been truly astonishing. Prices are violently fluctuating and the range of traditional volatility indicators like the VIX have exploded. Just look at the daily moves of the popular U.S. stock market indices for example. While it’s generally..

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Disintegrated Thoughts: ECB Volatility, Business Building, Speculation, & Judo

Image source: pixabay   For this post, I’d like to offer a few “Disintegrated Thoughts” on some things I’ve been thinking about in the investment markets.  These include: The ECB and volatility deleveraging Business building and ignoring valuations Sticking up for “speculation” Notes from the judo mat A spontaneously “live” ECB meeting and volatility deleveraging..

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The Bursting Of The Volatility Bubble: Part 2

Image by Peter Selbach sourced from pixabay   The following is Part 2 in a two part series. Part 1 of this series discussed my view of what volatility is and how it impacts investing. Here in Part 2, I present my read of the current volatility landscape and examine what it might mean for..

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The Bursting Of The Volatility Bubble: Part 1

Image by Kira Hoffmann on pixabay   The following is Part 1 in a two part series. If there were a Word of the Year award in finance it most certainly would go to volatility.  It seems like nearly every article you read makes some reference to it.  Is volatility gone for good or is..

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