This week we have seen a mini crash in the stock market indexes and an implosion of several short volatility ETNs. Mood in the stock market has quickly turned from exuberance to fear while some investors are ready to ‘buy the dip’.
Conventional wisdom suggests that the best time to buy stocks is when there is blood on the streets. Many suggest that high Vix readings are a good indicator to increase exposure to the market. Read more »
Back in January 2017, Donald Trump had just become President and most pundits were forecasting a year of stock market volatility and interest rate hikes.
As it turned out (despite terrorist attacks, natural disasters and provocative tweets) 2017 finished as one of the least volatile years in history. Read more »
When times are good the economy is strong and everyone has more money to spend. So is there any relationship between consumer spending and the stock market?
A new research paper suggests there is and provides a novel way of measuring consumer spending on a daily basis. Instead of looking at more traditional measures (such as personal income or consumer sentiment) the paper focuses on box office earnings. Read more »
One of the hardest things to do in investing is to buy the market as it makes yet another new high.
Intuitively it makes little sense. The only way to profit in the stock market is to sell something for more than you paid for it so why would you buy something that has been going up for the last eight years? Read more »
I try to keep Marwood Research topped up with new trading strategies every month. This month, another interesting investment strategy has been added to our program called Mid Cap Winners.
Mid Cap Winners is a medium term investing system designed for the mid cap space with an average holding period of around 60 days. Read more »
Sluggish growth and anaemic inflation has seen global commodity prices fall steadily in value since 2008. Because of this, and with stock markets reaching new record highs in 2017, commodity trading has gone out of fashion.
Yet in the past, commodities have provided a good source of returns for both investors and active traders. Furthermore, there is evidence to suggest that commodities can provide less volatile returns than some stocks. Read more »
Blair Hull is a legend of Wall Street and a former professional blackjack player. He was named by Worth magazine as one of Wall Street’s 25 smartest players and by Forbes magazine as one of the most successful traders of the last 40 years.
Today, Hull operates a number of ventures including an ETF that attempts to time the S&P 500 through a mix of 12 technical and fundamental indicators. In this article, we will look at the idea behind Blair Hull’s strategy and the 12 indicators he uses. Read more »
The stock market cannot go up forever. At some point there will be another stock market crash and as always there will be some winners and some losers.
In this article, I look at some techniques investors can use during a market crash and reveal two interesting strategies based on a recent academic paper. Read more »
In this article I implement Ray Dalio’s All Weather portfolio using popular ETFs and I back-test the strategy using Amibroker. The results show nice risk-adjusted returns for investors. Read more »
In this article I take a look at some timeless investing advice from Peter Lynch. Lynch is an American investor who ran the Magellan Fund at Fidelity Investments between 1977 and 1990. He’s one of the most successful fund managers of all time averaging an annual return for Magellan of 29.2%. Read more »