Tag "investing strategies"

Buy and Hold? Try These Investing Strategies For 2018 & Beyond

Most investors, knowingly or not, rely on long-only, passive strategies. They may shift holdings between stocks, bonds, and cash at various intervals, but generally, their portfolio returns mimic those of well-known stock and bond indices. A recent graph from Goldman Sachs, as shown below, serves as a prescient reminder that…

Growth vs Value Investing Relative To Your Age

It should not be lost on investors that in 2017 the S&P 500 Growth Index outperformed the S&P 500 Value Index by 13% (+25.4% vs +12.6%). These two style indices essentially break down the S&P 500 constituents based on either having value or growth characteristics. As an example, the price-to-earnings…

Reviewing The Leaders Of 2017: The Top 5 S&P Stocks

I gave a presentation at the 2017 Behavioral Finance Symposium entitled “The Mindless Investor and the Mindful Investor.” I discussed ways to apply the lessons of mindfulness training as an investor, allowing you to learn from the past, focus on the present, and plan for the future. One of my…

Investors: The Dangers Of Performance Chasing

The most prevalent disclaimer in the investments world goes something like this – “past performance may not be repeated”. If you don’t believe us, just read the disclaimers from investment firms, including ours. Despite the prevalence of this disclaimer, investors often place the lion’s share of their decision making process…

Behavioral Bias: How Investors Can Profit From It

All investors make errors that can often be traced back to a behavioral bias or emotional mistake. If under certain circumstances these mistakes are systematic, then it is not a stretch to believe we can develop systematic strategies to profit from them. After all, this is the essence of active…

Introducing the 20/40/60/80 Portfolio

One of the ways I like to evaluate market breadth is to look at four stocks within a large index. I look at the returns over a period like the last six months, and take the stocks at the 20th, 40th, 60th and 80th percentiles. This can be a helpful…

Inside The S&P 500’s Record Streak… And What To Expect Next

The S&P 500 Index (INDEXSP:.INX) closed the month of November today at 2,647.56, a fresh new all-time high monthly close. The Index gained 2.81% in November, and is now higher by 18.26% in price-only returns thus far in 2017. When including dividends the S&P 500 has now increased 13 consecutive…

Generating Alpha: The Holy Grail Of Investing

The holy grail of investing is generating alpha, adding performance relative to an appropriate benchmark. Portfolio managers around the world throw unimaginable resources at this quest that often proves elusive. It is all about getting an edge. Some use deep fundamental analysis, digging into the financials to uncover mispriced companies…

Visuals Help Investors… And No Need To Be Complicated

As you can probably guess from my career as a technical analyst, I am huge fan using data visualizations to tell the story. Earlier today, I actually brought up Excel to tinker with a VBA module and my eyes immediately started to glaze over.  So when I first read Edward Tufte’s Beautiful…

S&P 500 Chart Spotlight: Higher Prices Into 2018

S&P 500 LONGER TERM The S&P 500 (INDEXSP:.INX) may be vulnerable to a pullback over the coming days/weeks, but that should produce another buying opportunity for active investors. I have a wide buy zone between 2490-2530 on any pullback. Today I want to look out a bit further. Let’s discuss…