Calm before the Storm?
Markets are unnervingly calm these days. During the last six months, the realized volatility of the S&P 500 Index fell to the lowest level in more than half a century. […]
Category Archives: EQUITIES
Betting on rising volatility is a loss-making strategy!
Equity market volatility is low. Hence, recommendations to invest in volatility are abundant again. But before you pursue such an investment, let me warn you first. Because, making a profit from such an investment strategy requires perfect foresight. On average, a long position in volatility is a very unprofitable strategy. Especially, when volatility is low! […]
CAPE – the good, the bad and the ugly
The CAPE ratio, or Cyclically Adjusted Price Earnings ratio, is making headlines again. The stock market valuation indicator developed by Nobel laureate Robert Shiller is giving many investors headaches. But, […]
Bear Market Optimism
Markets are pricing in a low probability of a bear market, but are they right?
The Average Return Doesn’t Exist!
Ask a random stock market ‘guru’ at the beginning of the year what he or she expects what equities will do that year and you will probably get an answer […]
Bubble Ban!
I’m not a big fan of investment ‘gurus’ that make a habit of warning us against financial market bubbles… all the time. The equity market, the housing market, technology stocks, […]
How April became the Pop Star of Equity Returns!
April has arrived. Hence, spring is in the air. Well, if you live in the Northern Hemisphere, that is. Apart from bringing more pleasant weather, April also tends to be […]
The Bulls are gone and why that’s good news!
The latest outcome of the weekly AAII Investor Sentiment Survey revealed that bullish investors are historically scarce. Less than 20% of the individual investors surveyed by the The American Association […]
13 Recession Charts!
Over the last couple of days equity markets have intensified their downward trend. Worries about China and falling oil prices are now accompanied by another major issue, the (increasing) possibility […]
Quick Fact – As goes January…
We are only halfway through January, but it doesn’t feel like a fresh start to the new year, now does it? From day one markets looked grim and sentiment turned […]
