Category: Myths

Gold Miner Myths

“Gold Miners are a leveraged play on Gold” “Gold Miners are a good hedge against the S&P 500” There are few sectors in the market that generate as much attention, emotion, and misinformation as the Gold Miners. You’ll often hear some version of the two quotes above, stated as fact. Let’s evaluate the data to […]

“Emerging markets are getting crushed: The oil crash raises the risk of a full-blown crisis in the emerging market world.” – CNN Money, February 2016 It’s a tale as old as time. Emerging Markets stocks “need” higher oil prices. Oil is said to be their lifeblood; without it they are doomed to a state of […]

According to the CBOE SKEW Index, the risk of a stock market crash has never been higher. What exactly does that mean? The SKEW Index is calculated based on S&P 500 options, measuring the perceived tail risk in S&P 500 returns over the next 30 days. The higher the SKEW Index, the higher the implied […]

REITs, Rates, and Returns

Interest rates are on the rise and Real Estate Investment Trusts (REITs) have been struggling. The iShares U.S. Real Estate ETF (IYR) has fallen nine straight days, the longest streak since its inception in 2000. If you listen to the pundits, they will tell you that rising rates are the culprit. You’ll often hear that higher […]

Optical Illusions

In August 1987, the Nasdaq 100 was extremely overbought. In July 1998, the Nasdaq 100 was extremely overbought. In January 2000, the Nasdaq 100 was extremely overbought. In October 2007, the Nasdaq 100 was extremely overbought. The Nasdaq 100 is extremely overbought today. Sell everything? If only it were that simple. When looking at the […]