Month: November 2016

“The world is wrong side up. It needs to be turned upside down in order to be right side up.” – Billy Sunday A lot has clearly happened post-election to investment markets, as significant rotations have pushed money into new themes. There has been a historic streak of positive returns in small-cap stocks, bonds have sold […]

We’ve seen a lot in the last two weeks: Manias, Panics, and All-Time Highs. Manias Dry Ships Inc. (a shipping company) went from $4 to $102 in 4 trading days following the election, an astounding gain of over 2,000%. There were a wide variety of reasons attributed to the advance (Trump is bullish for growth/shipping, […]

Just How Bullish is Small Cap Strength?

“The strength in Small Cap stocks is wildly bullish. Stocks do much better when Small Caps are outperforming.” – Pundit You’ve probably heard the above quote in various forms over the years. It’s a favorite among pundits and is never challenged. We’re hearing it again today, with the Russell 2000 up 10 days in a […]

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The Metal That Failed Economics

Dr. Copper, Dr. Copper, Dr. Copper… Can we please stop with the “Dr. Copper” references? Not only does Copper not deserve a PhD in economics, by any unbiased measure it has failed Economics 101. Why? Repeat after me: because the direction of Copper by itself tells you nothing about the U.S. economy or the U.S. […]

After declining for 9 consecutive days, the S&P 500 rallied over 2% this Monday (November 7). It was an unusually strong day where over 90% of the total volume in the NYSE was volume in advancing shares, a so-called “90% upside day.” Such days are rare historically, occurring less than 1% of the time since […]