The decision last week to go heavy stocks and no bonds looked pretty good for half the week. Stocks were down, but they were down less than everything else. Then the Fed started talking. I honestly didn’t pay much attention to what they said, but its clear the market did as everything switched soon after.…
Month: June 2021
To Stay Sharpe Miss Right
With the US Open returning to the site of one of Tiger Woods’ greatest triumphs, it’s time to re-evaluate investing and portfolio construction from the perspective of Tiger Woods’ golf strategy. This time though instead of looking at the peak and maximizing return, we are going to explore errors and the affect they have on…
Portfolio on 6.10.21
I should have put this out a few days ago, but better late than never. The portfolio has moved pretty aggressively over the last few weeks away from bonds, and it’s worth discussing. Correlations between bonds and stocks are quite high right now. As we know, treasury bonds aren’t paying out much with the 30…
Averages are a Bitch
Financial statistics are hard. It’s really difficult to determine the average return of individual stocks. You would think defining typical stock properties would be straight forward, but interestingly it’s not, and I fear many have made false conclusions about stock returns. Take the question: what is a typical return of a stock in the S&P…