Investment Insights

You Are Not A Contrarian

It seems like every investor (amateur or professional) bills themselves as a contrarian.  They will tell you that they tend to buy unloved or unwanted companies when they are trading for a great bargain.  The simple fact is that this is very hard.  The Motley Fool has a great article on this very topic.

The Predictive Power (Or Lack Thereof) Of Stock Market Indicators

There is really no indicator that we know of that can predict stock market performance.  If there ever were, it would very quickly be arbitraged away since markets tend to be fairly efficient.  Merrill Lynch uses a metric they call the “Sell Side Indicator” to determine future stock performance.

Fleecing Investors, When Will They Learn?

Several days ago, Bloomberg wrote a scathing article on Managed Futures Funds. These funds started to gain much more popularity after 2008. They tend to be non-correlated to the overall market, appealing to investors after losing over half their money in the stock market.

Revisiting Gold

The number of calls we have received about gold has certainly diminished over the past several months as the yellow metal has lost over 25% of its value from the peak.  Here is a chart of the last few years.

Why Are Interest Rates So Important?

In the investment world, much of the talk over the past few weeks seems to be revolving around the spike in interest rates and what that means for the global financial markets.