Category: Investing

The Constants

Investing is not mathematics. Investing is not physics. There are no fundamental laws that govern the markets and dictate their every move. There are no constants, universal in nature, to help you solve for the perfect portfolio. 3.14159… Archimedes’ constant, also known as Pi (π), is the ratio between the circumference and the diameter of […]

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Innovate or Die

Back in January 2007, Netflix announced a bold plan to bring internet video to television sets. At the time, few believed they would be successful, but such skepticism was nothing new. The “death” of Netflix was predicted first in late 2002, not long after its IPO. Wal-Mart was entering the DVD-by-mail business, and who could […]

From Silver Linings to Gray Skies

“I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling the other customers, “Well, you know this is a bull market!” he really meant to tell them that the big money was not in the individual fluctuations but in the main movements – that […]

As Good as It Gets?

If you had to describe the perfect market environment, what would it look like? The following attributes might come to mind: 1) High returns with low volatility and 2) low drawdowns, with 3) global participation, 4) both stocks and bonds rising, 5) the economy expanding, 6) earnings growing, and 7) an easy Central Bank. Sound […]

Statement 1: the average year has between 3 and 4 corrections greater than 5%. Statement 2: every year has between 3 and 4 corrections greater than 5%. Statement 1 is a true statistic regarding the S&P 500 going back to 1928. It can serve as a helpful reminder that there is no reward without risk […]