Give the benefit of the doubt to the classic 60% stock / 40% bond portfolio. That’s not easy, given its awful performance so far this year. On Jun. 13, the day the S&P 500 SPX, -0.20% officially entered bear-market territory by closing more than 20% below its Jan. 3 high, long-term US Treasurys were sitting…
Read More “Why the 60/40 portfolio is a worthy strategy even though stocks and bonds are weak” »
Rising US interest rates and inflation at multidecade highs is waking investors up to the fact that a vivid imagination is no way to buy a stock. Until recently, the investors who had the richest imaginations seemed to make the most money – until they lost their gains in a matter of months. ARK Innovation…
Don’t expect a replay of the 2021 meme-stock short squeeze. Some investors are, given that short-sellers have boosted their bets against GameStop GME, + 2.47% and AMC Entertainment Holdings AMC, + 7.13%. In January 2021, it became increasingly difficult for short-sellers to find shares to borrow to sell short. Those who wanted to cut their…
Not many investors can claim a lifetime of stock-market success. Warren Buffett of Berkshire Hathaway BRK.A, -1.94% BRK.B, -1.39% comes to mind, of course, but what about Warren Kaplan? Who? Kaplan is an 85-year-old individual investor with 70 years of stock-trading experience. Kaplan grew up in a poor family in the Bronx, NY, but by…
The US stock market is experiencing a liquidation panic where everything is getting sold. The good news is such panics usually don’t last long. Analysis from Rob Hanna of Quantifiable Edges suggests a rare Inverse Zweig Breadth Thrust (ZBT). Although the sample size is small (n = 10 since 1926), the bearish implications of the…
Last month I examined the culprits that are causing global inflation, including rising interest rates, persistent supply chain issues (China locking down cities), and climbing energy and fertilizer prices. This brings us to stagflation. If rising costs (inflation) were predictable, then wages would match this increase and the impact on the consumption of goods would…
