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One of the most misused and destructive phrases in the investment world is the notion of a “stock picker’s market.” Depending on the market environment, it is used in different ways, but all generally incorrect. In a relentless uptrending market, investors become highly confident in their ability to pick stocks, naturally calling it a “stock […]

2014: The Inverse of 2013

“For the loser now will be later to win, For the times they are a-changin’” – Bob Dylan At the beginning of this year (click here and here), we cautioned investors against abandoning all asset allocation and risk management principles in chasing the unusual 2013 performance in US equities. It is no secret that many […]

Yesterday, we learned of a new report released by the International Monetary Policy (IMF) warning that a shock in Emerging Markets could “rattle” developed economies. This is merely the latest in a steady stream of news reports over the past few months with similar warnings. As I have been writing about since February, though, the […]

We are honored to announce that the Market Technicians Association (MTA) has awarded us the 2014 Dow Award for our paper entitled “An Intermarket Approach to Beta Rotation.” The full paper is now available to download on the Social Science Research Network (SSRN) (click here). In the paper, we reveal a Beta Rotation Strategy (BRS) […]

Breaking Down the Momentum Breakdown

With one trading day left in March, most investors who only follow the S&P 500 (SPY) would assume that it has been a relatively quiet month. The S&P 500 is currently flat in March and the high to low range in the index during the month is a very calm 2.7%. In fact, this is […]