Posts filed under “Investing”

Emerging Markets or U.S. Stocks?

C-2014-06_I_Would_Choose_Emerging_Markets_Wouldnt_You_Figure1_Large

Source: Research Affiliates

 

The chart above comes to us from Research Affiliates. It notes:

Through March 31, 2014, the three-year cumulative return of emerging market stocks as measured by the MSCI Emerging Markets Index is — 8.35%, while that of U.S. stocks as measured by the S&P 500 Index is 50.73%.

That raises a very interesting issue. The long-term trends favor emerging markets but they are nowhere to be found in the equity markets. Those weak numbers may be mean reverting soon. Continues here

Category: Investing

Investing/Trading Rules, Aphorisms & Books (Summer 2014)

A few years ago, I started pulling together my favorite Trading Rules & Aphorisms. It turned out to be a popular post, and so we added “Rules” as a new category. Since then, I have taken to updating this sporadically (see this).

We are overdue for an update.  What follows are the smartest and most insightful perspectives from traders, analysts, economists and investors on what to do — and what not to do — when it comes to markets that have been previously published on TBP.

Here is the latest update:

Trading & Investing Rules, Aphorisms & Books

Jeremy Grantham: Investment Lessons Learned Over 47 Years (Mistakes Were Made)

Sir John Templeton 16 Rules For Investment Success

Bernard Baruch: 10 Rules of Investing

10 Lessons from 1987 Market Crash

Livermores Seven Trading Lessons

Bob Farrell’s 10 Rules for Investing

James Montier’s Seven Immutable Laws of Investing

Byron Wien’s 20 Rules of Investing & Life

Richard Rhodes’ 12 Trading Rules

John Murphy’s Ten Laws of Technical Trading

Six Rules of Michael Steinhardt

Warren Buffett Favorite Investing Quotes

Nassim Taleb’s 5 Rules of Volatility

Morgan Housel’s 9 Financial Rules

David Merkel: The Eight Rules of My Investing

Art Huprich’s Market Truisms and Axioms

DENNIS GARTMAN’S NOT-SO-SIMPLE RULES OF TRADING

Rosie’s Rules to Remember

Louis Ehrenkrantz’ 7 Golden Rules for Investing

In Defense of the “Old Always” (Montier)

Lessons from Merrill Lynch

Gerald Loeb’s Market Wisdom

Lessons Learned from 37 Years of Futures Trading

Richard Russell’s The Power of Compounding

Doug Kass: 10 Laws of Stock Market Bubbles

The golden rules of investing (India)

25 Common Sense Money Tips

Dan Bunting’s Laws of Investing

Cassandra’s (Not so) Golden Rules About Investing (& Not Investing)

These are more general rules, not necessarily about investing:

50 Cognitive Distortions

Todd Harrison’s 12 Cognitive Biases That Endanger Investors

Lefsetz’s Business Rules

If you have any suggestions for any good lists of rules I may have missed, please link to them in comments. If they are worthy, they will get added to the list.

My own trading rules and favorite Trading Books are after the jump

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Category: Investing, Rules, Trading

Category: Asset Allocation, Investing, Psychology, Think Tank

Why Is It So Hard to Call a Market Top?

Each morning, I go through a similar routine: I wake up (no alarm clock), go to the kitchen to get a cup of coffee (this is my machine of choice lately), launch a script that opens 40 or so Firefox tabs. As part of my morning research, I quickly scan this series of websites to…Read More

Category: Investing, Sentiment, Short Selling, Technical Analysis, Trading

A Bear Market for Mom & Pop Investors

Last year, we noted that there was a “Bubble in Bubble Calling.” News media bubble chatter was the rage, whether it was tech initial public offerings or stocks or bonds — all caused by “a global central bank QE bubble.” Here we are two quarters later, with the central bank reducing quantitative easing by scaling…Read More

Category: Investing, Markets, Psychology, Sentiment

World’s Cheapest Stock Markets

click for ginormous version Source: The Telegraph   Nice graphic from The Telegraph, showing relative valuations around the world, using P/E ratios, CAPE, and Price to Book. To be named “cheap”, markets had to be trading below their own historic valuation across all three measures. As the map to the left shows, only a handful…Read More

Category: Investing, Markets, Valuation

Congratulations, You Were Drafted. Prepare To Go Broke.

Professional athletes need to learn to keep their finances in good shape Barry Ritholtz, Washington Post, May 30, 2014     Michael Sam made sports history when the St. Louis Rams made him the first openly gay player to be drafted into the National Football League. If he is smart, he can join another elite…Read More

Category: Apprenticed Investor, Investing, Sports

How Much Do S&P500 P/E Ratios Vary Historically?

Source: Bespoke Investment Group   How expensive are stocks? Its a question that seems to beget many different answers. Too often, the response reflects the responder’s investment posture. If they are long equities, they typically respond by saying “Not very.” If they are short, or in cash or in other risk assets, the answer is…Read More

Category: Index/ETFs, Investing, Markets, Valuation

How to Make Better Predictions

    “It’s tough to make predictions, especially about the future.”  -Yogi Berra, or Neil Bohr   Last week, I was in San Francisco speaking to 700 financial planners from northern California. The areas that seemed to generate the most feedback and questions were on expert commentary and on risk. People love forecasts. They shouldn’t…Read More

Category: Investing, UnGuru

Paint By Numbers: RoboAdvisors

From I ❤ Wall Street:   They say art is in the eye of the beholder so I want to get your take on something I painted in my studio today. I think it’s pretty good, way better than the macaroni art I made last week. The subjects of this picture are three firms using…Read More

Category: Investing, Think Tank, Web/Tech