Reader Joao has been watching our Trend Tracking Indexes (TTIs) for some time now and had this to say: I am observing your TTIs very carefully, and plan to take action when you recommend. I have a question however on the slope of the TTI: how relevant is this slope (as compared, for instance, to a 200 day moving average)? …
Running Out Of Gas
Yesterday, the bulls came charging out of the gate pushing the Dow up almost 250 points in the early going. But, to the shock of traders and the bullish crowd, the rally faded and the major indexes ended up in negative territory. It’s too early to tell whether this total turn-around was a one day event or the resumption of …
The Election And Your Investments
Some readers have asked me to comment on the upcoming elections, the possible outcome and the effect on various investments. I try to stay away from commenting on politics in general, since I despise the way most positions go about their business. Empty promises and total lack of integrity would be some of the reasons among many others. However, yesterday …
Hedging Clarification
I have touched on the subject of hedging before, but one reader posted this question: Can you please clarify what hedging means? In one of the posts I read: “The safest and most responsible way to use reverse-index ETFs is to hedge or protect your equity portfolio in a bear market.”Suppose I hold $ x worth of an ETF. How …
Sunday Musings: The Trillion Dollar Meltdown
I just finished reading Charles Morris’s “Trillion Dollar Meltdown,” which describes the recent years of easy money, high rollers and the great credit crash. According to Morris, an acclaimed financial writer, the sub-prime crisis is only a preview of the havoc that will play out across the full spectrum of financial assets. Arcane credit derivative bets are now well into …
How To Invest $50 million Dollars
There are many different viewpoints on how to invest your money, whether it is during the accumulation phase of your investment life or after you “have arrived.” To my way of thinking, the approach for growing your assets is entirely different from the one you should use if you find yourself suddenly with a windfall in the range of 10s …