Behavioral Finance

Top Trading Links: Killer Research And Making Progress

What is progress? Progress in education is when you look back and you see things differently. As George Bernard Shaw said “Progress is impossible without change and those who cannot change their minds cannot change anything”. To be a better market operator, you’ve got to be willing to constantly re-shape…

The Momentum Factor: Why Momentum Investing Works

In a recent Q&A with Patrick O’Shaughnessy, I said the following when asked about the momentum factor (re: momentum investing): I’m a huge fan of the momentum factor, mainly for its diversification benefits. It’s also the least understood of the well-known risk factors. I’ve done a ton of work on…

Professional Trading Insights: When Everything Goes Wrong

Regardless of your investing or trading strategy, prowess or experience, there will be times when everything (and I mean “everything”) goes wrong. I share this experience more as an educational piece on the realities of trading than anything else. For me personally, last week was one of those weeks where nothing…

Top Trading Links: A Whole Lot Of Awesomeness

Information presented to us is quite often biased in some way shape or form. And we are seeing a lot more of it these days. Thankfully, we can still dig deeper to find and use quality data and information. In this week’s Top Trading Links there’s an abundance of awesome…

Market Sentiment Roundup: Where Did All The Bulls Go?

These are some pretty amazing times we are living in is all I can say. Here are a bunch of charts I’ve created this week that paint a truly amazing picture of market sentiment. Now first off, just remember that the Nasdaq Composite is at all-time highs, along with Small…

Top Trading Links: Staying Desperate And Hungry

The NBA Finals have been highly entertaining this year. Surprisingly Matt Dellavedova has quickly become a cult figure. Is he more talented than league Most Valuable Player Steph Curry? Hell no, but it’s painfully obvious he wants the championship more. The point is: there is one heck of an upside…

The Downside Of Long-Term Buy And Hold Portfolio Diversification

There are many different ways to invest, including using a strategy that involves portfolio diversification via ETFs and/or mutual funds. For example, we recently saw the investment allocation model (in the chart below) described as the best way to invest for long-term growth based on the best research and investment…

What Are ETF And Mutual Fund Flows Telling Investors Now?

There are many ways to look at investor sentiment, one of my favorite is looking at flows to mutual funds and ETFs. The Investment Company Institute (ICI) compiles all of this data. You can find the mutual fund flows from ICI here, but for the ETF flows my friend @NickatFP hooked…