Investing Strategy

Are You An Investing Optimist? Check Your Portfolio

Investors are very optimistic in bull markets and allocate much of their portfolio to stocks, increasing their risk. Analysts and economists expect more spending which will consequently push GDP and inflation up, but low rates push people to save more for their retirement. If the GDP and earnings don’t grow as expected, we could see… Read More »Are You An Investing Optimist? Check Your Portfolio

The U.S. Dollar: Should You Stick To It Or Diversify Now?

The dollar has been positively correlated with stocks for the last 4 years which is unusual. Potential FED interest rate increases don’t make international diversification a great idea right now. Any sign of a U.S. recession should be a good time to think about international diversification with emerging markets. Introduction On big news sites like Bloomberg you… Read More »The U.S. Dollar: Should You Stick To It Or Diversify Now?

Small Cap Value Stocks Have The Best Returns, But Can You Stomach The Catch?

Historically, small cap value stocks are the best performers. They don’t trade in sync with the market and often are waiting to be discovered. The “waiting to be discovered” period can last for a few years. Introduction Almost a month ago we discussed how, from a risk-reward perspective given current valuations and historic performance, it… Read More »Small Cap Value Stocks Have The Best Returns, But Can You Stomach The Catch?

Minimize Risk Without Sacrificing Returns? Sven Tells You How

By dissecting the S&P 500 per valuation quintiles we see that only parts of the market are overvalued. Historically, buying the lowest PE quintile stocks has increased annual returns by 360 basis points. High PE stocks have large market capitalizations which force you to own more of them through index funds, increasing your risks and… Read More »Minimize Risk Without Sacrificing Returns? Sven Tells You How

Can Your Portfolio Withstand Any Economic Environment? See What Ray Dalio Has To Say

With 86 months of economic growth and growing money supply, the current economic environment might soon change. On top of the beta returns, specific alpha asset allocation can further increase your returns. In this article you will find a strategy that works at all times. Introduction Ray Dalio is the most successful hedge fund manager… Read More »Can Your Portfolio Withstand Any Economic Environment? See What Ray Dalio Has To Say

Beware of “Thinkless” Investing

Passively managed funds do offer the lowest fees but invest in stocks without “thinking”. High positive net inflows into passively managed funds push large caps higher regardless of fundamentals. If non “thinking” investors panic when things turn, large caps will be the worst performers. Introduction Today we are going to discuss two related topics: fees… Read More »Beware of “Thinkless” Investing

As The S&P 500 Reaches New Highs, Asset Inflation Continues

All factors are indicating an artificially created asset inflation. Earnings are expected to decline with economic outlook being constantly revised downwards. Gold is gaining alongside stocks which confirms that all assets are inflated. Introduction Amidst all the turmoil from BREXIT, negative interest rates and global downward economic growth forecasts, the S&P 500 has reached a… Read More »As The S&P 500 Reaches New Highs, Asset Inflation Continues