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Category: Investing

Momentum in Name Only

“The premier anomaly is momentum.” – Eugene Fama and Kenneth French There is momentum in theory and there is momentum in practice. Momentum in theory is the premier market anomaly. Momentum in practice is a bit more complicated. What is the look-back period (3 months, 6 months, 12 months, etc.)? What is the rebalance frequency […]

The Other Side of Uncorrelated

In a meeting last year, an experienced investment advisor explained to me what he looks for in an “alternative” strategy: “Low correlation, low volatility, no downside, and high returns. I want to have my cake and eat it too.” That is a verbatim quote. The advisor went on to tell me story after story on […]

Bitcoin and the Greater Fool

“It is the peculiar quality of a fool to perceive the faults of others and to forget his own.” – Marcus Tullius Cicero Would you pay $110 for something that’s only worth $85.73? What if you owned something worth $85.73 and you could sell it for $110?  Would you hold on to it? These probably […]

Valuation and Volatility

U.S. stock valuations are rising. One way to measure that is the CAPE ratio, which smooths earnings over a ten year period. This ratio for the S&P 500 hit 28.7 this week, which is in the 94th percentile going back to 1928. The only periods in history with a higher CAPE ratio were July through […]

Fast Content vs. Good Content

  • Investing
  • Charlie Bilello

Fast content is timely. Good content is timeless. Fast content seeks clicks. Good content seeks conversation. Fast content induces fear and greed. Good content helps you overcome these emotions. Fast content is self-promotional. Good content is self-aware. Fast content assigns blame. Good content takes ownership. Fast content is fleeting. Good content is cumulative. Fast content […]

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