Posts filed under “Apprenticed Investor”

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My Sunday Washington Post Business Section column is out. This morning, we look at the motivations of various market commentators.

The study of investor bias and psychology has long fascinated me. This column revisits the subject of different roles investors must play in order to confront these problems. I tangentially mentioned this in one of my first columns for WaPo.

The online version is titled Pay close attention to what’s motivating market commentary while the print edition had the headline Suit up in your best barrister gear: Good investors often play trial lawyer.

Here’s an excerpt from the column:

“If you consume lots of stock research or market commentary — or much of anything from the financial media — then you will find this exercise especially important. Let’s look at the motivations of various pundits, strategists and fund managers. Suit up in your finest barrister gear; we are going to play “cross-examining litigator” for fun and profit…”

As you expect, all of the above players — including your humble author –  have biases. Some are obvious, some more hidden and insidious.

 

 

Source:
Pay close attention to what’s motivating market commentary
Barry Ritholtz
Washington Post, May 4 2014
http://wapo.st/1nfUPqw

Category: Apprenticed Investor, Financial Press, Investing, Psychology

If Stocks Go Up, Must They Always Come Down?

What’s gone up won’t always come down Barry Ritholtz Washington Post, April 20 2014     U.S. equity markets made substantial gains last year. The Standard & Poor’s 500-stock index, the traditional benchmark for equities, was up 29.6 percent. Add in dividends, and it’s well over 30 percent. Technology and small-cap stocks did even better, with…Read More

Category: Apprenticed Investor, Investing, Technical Analysis, Valuation

What Goes Up, Must Come Down?

>   My Sunday Washington Post Business Section column is out. This morning, we look at What’s gone up won’t always come down. The print version had the headline You might think the markets are ready for a breather after last year’s gains, but . . . Here’s an excerpt from the column: “You might think…Read More

Category: Apprenticed Investor

Stop Looking for “the Story” Why Markets Are Falling

Whenever we see any sort of disruption in markets an explanation usually follows. The headlines will explain that “Markets are going up/down because of this good/bad thing.” News anchors will solemnly intone why the volatility is significant and what it means for one thing or another. None of these casual explanations can withstand close examination….Read More

Category: Apprenticed Investor, Investing, Psychology

What You’re Hearing Is Noise

In a new project at Bloomberg I will interview some of Wall Street’s most influential thinkers. I’ll share more details with readers when we get closer to a launch date, but several consistent themes have become clear to me, even at this early stage. The one I want to discuss this morning is the concept…Read More

Category: Apprenticed Investor, Cognitive Foibles, Financial Press, Investing

Barron’s Unsentimental Investors

  Our monthly letter to clients was picked up and excerpted by Barron’s Market Watch: A Sampling of Advisory Opinion. This is the section of the commentary relating to investor sentiment: Unsentimental Investors April Insight by Ritholtz Wealth Management 90 Park Ave., New York, N.Y. 10016 April 2: Anyone who thinks stock market sentiment is…Read More

Category: Apprenticed Investor, Media, Sentiment

NFP Day? Try Doing Nothing

While I have been busy kvetching about the weather, another payrolls report has snuck up on us. Estimates are for a 200,000 increase in nonfarm payrolls, the most since November, according to the median forecast of 90 economists surveyed by Bloomberg. But really, I have to ask: Why do you care? As I have relentlessly…Read More

Category: Apprenticed Investor, Employment, Investing

Are Stocks Pricey or Cheap?

How to know whether stocks are cheap or pricey Barry Ritholtz Washington PostTerms March 23, 2014     Last week, the Fed shared some widely expected news: It will taper more — keeping up a policy of slowly reducing its bond-buying program with the goal to wind it down by year’s end. It has telegraphed…Read More

Category: Apprenticed Investor, Investing, Valuation

Are Stocks Cheap or Pricey?

>   My Sunday Washington Post Business Section column is out. This morning, we look at whether stocks are cheap or expensive. The print version had the full headline Are Stocks Cheap or Not? How to Tell. The conclusion is surprisngly middle of the road. Here’s an excerpt from the column: “To know whether stocks…Read More

Category: Apprenticed Investor, Investing, Valuation

Cheap & Simple Beats Costly & Complex

  Have a look at the tables above showing the performance of various investments during the five years leading up to the financial crisis lows, and the five years after. It leads us to a rather fascinating exercise, looking at complexity, cost and performance. Let’s start with the worst performers pre-crash: US Real Estate and…Read More

Category: Apprenticed Investor, Commodities, Hedge Funds, Investing