The Wall Street Journal recently noted that day traders are returning to the market. When speculative traders start betting on the market, it’s typically a sign of trouble ahead. Their…
Pick One: High Risk or Low Returns
Here’s your choice: Take on lots of risk and hope for the best or watch your standard of living erode. The stock market has been soaring, thanks to the Federal…
The Myth of Market Efficiency
“Belief in myths allows the comfort of opinion without the discomfort of thought.” – John F. Kennedy The current stock market is exposing the myth of market efficiency. The myth says…
“Buy and Hold” Is NOT “Still A Winner”
Investors are being advised by Princeton Professor Burton G. Malkiel (“ ‘Buy and Hold’ Is Still A Winner”) to hang in there, even when the market drops 60% of its…
When Good News Is Bad News
Sometimes investment managers live in Bizzaro world, the place in the old Superman comics where everything is the opposite of what logic would dictate. A case in point is the…
Fewer Small Investors: What It Means
In our last post, we made the point that small investors are having a smaller impact on the stock market. So what does it all mean? For one thing, it…
Small Investors Making Smaller Impact
Small investors get no respect. When they’re leaving the market, it usually means the market is heading up. When they’re investing in the market, it usually means the market is…
Knowing When To Sell
“Investors spend most of their time deciding what stock to buy. They spend little if any time thinking about when and under what circumstances their stock should be sold. This…