Blog

Category: Myths

Myths, Markets and Easy Money

“Finally, while my observations are uncertain and should be taken with a grain of salt, what I am sure of is that valuations and markets are elevated, and the easy money in this cycle has been made.” – Howard Marks, Oaktree Capital Memo (July 2017) “The easy money has been made.” If that saying sounds […]

U.S. National Debt continues to rise and many investors are afraid. This fear is nothing new; it has been around for decades. Is it rational for equity investors to fear rising debt levels? Let’s take a look. First, some background. Since 1966, the U.S. National Debt has risen in each and every calendar year. Through […]

Tall Tales and Transports

“The Transports are rallying, hitting new all-time highs. That’s extremely bullish for the broad market.” – Pundit One of the tallest of tall tales in markets is the myth of all-powerful Transports. When Transportation stocks are hitting new highs, as they are today, all is said to be well in the world. Investors can safely […]

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 […]