Posts filed under “Investing”

Trick Question: How Low Can Gold Go?

One of the things I like to do in all of my musings is to find some thing or person who is wrong about an investing-related subject, then trying to figure out where they went awry. On occasion, small pearls of wisdom can be derived from this analytical process, as in this discussion on narrative. Other times, the lessons are simply an exercise in snarky fun, as in the “12 Rules of Goldbuggery.”

Regardless, the underlying thesis is, “If only we can develop a set of intellectual tools to analyze investing errors, then we can apply them to ourselves and perhaps avoid making similar errors.” The hope is that some degree of self-awareness avoids the sorts of systematic gaffes we see every day.

That brings me back to the gold-industrial complex. I have criticized this group for their religious fervor, lack of discipline and deficient risk management. Their money-losing approach to investing via the narrative process, while ignoring the data in front of them, continues to bedevil unwise investors. Every possible investment has its own group of cheerleaders, including sales people and other dependents who want to see their particular asset flavor do well. It is in their own financial interest for prices to rise, so naturally they pay no heed to various warning signs.

Gold’s fall below $1,200 an ounce last week is the reason I bring this up again. Reaching its lowest level since early 2010, as other precious metals such as silver and palladium are at or near five-year lows, is a good enough occasion to remind some readers of the errors of their ways.

continues here



Category: Gold & Precious Metals, Investing, Psychology, Really, really bad calls

World’s Greatest Stock Picker®

> My Sunday Washington Post Business Section column is out. This morning, we look at The world’s greatest stock picker? Bet you sold Apple and Google a long time ago. (Thats the print headline; online it was Why the world’s greatest stock picker would’ve ditched Apple). This is the third (and likely final) installment of…Read More

Category: Apprenticed Investor, Investing, Trading

Reminder: We’re coming to D.C. October 15-16th

A quick reminder that later this month, myself and some staffers will be visiting clients and prospective clients in the Washington, D.C. area. Some of you are familiar with our investing philosophy, but this is an opportunity to have a more in depth, personal conversation. If you are interested in meeting with us, hearing our…Read More

Category: Asset Allocation, Investing

Asness, Bogle on Investment Strategy, Pension Funds

Clifford Asness, managing and founding principal of AQR Capital Management, and John C. Bogle, founder of Vanguard Group Inc., talk about investment strategy, fund management and the outlook for pension funds. Bloomberg’s Tom Keene moderates the discussion at the Bloomberg Markets Most Influential Summit in New York.

Source: Bloomberg, Sept. 22 2014

Category: Investing, Video

Buy Stocks? No Way!

Another classic from Jason Zweig’s archives:   On this day in 1988: Buy Stocks? No Way! hollers a headline in Time magazine. Wild horses couldnt’ drag me back into stocks. Rather than gamble in this market, I might as well go to Las Vegas, retail investor Curtis Beusman tells Time. Eleven months after last years…Read More

Category: Investing, Really, really bad calls

Life Magazine: “The public is investing in the stock market”

Life Magazine circa September 1958: LIFE Magazine highlights a strange new phenomenon: The public is investing in the stock market as never before. “On the average,” reports LIFE, “500,000 new customers a year have been getting into the market and 8.6 million Americans now own some kind of common or preferred stock…. To an extent…Read More

Category: Financial Press, Investing

John Bogle on the Rise of Index Funds

The founder of Vanguard explains why his invention is winning the battle for assets. Plus: The problem with ETFs, and why we need a transaction tax.

Category: ETFs, Index/ETFs, Investing, Video

QOTD: Reorganizing Europe

I have to admit I am intrigued by this advice: Reorganise Europe. Sell off France, privatise Spain and Italy, nationalise Germany, buy Switzerland, put Greece on six months performance watch, promote Poland, retire off Luxembourg  and make Belgium redundant. Source:  Polemic’s Pains   If Europe does not get its act together soon, this process might…Read More

Category: Humor, Investing

Why Hedge?

The news last Monday was a shock — the Calpers California earthquake. For a variety of reasons, the California Public Employee’s Retirement System, the nation’s largest public-pension fund, said it was dropping hedge funds from its roster of investment allocations. This tremor will be felt far and wide. We are unlikely to know the full…Read More

Category: Asset Allocation, Hedge Funds, Investing

Playboy Bunnies, Mila Kunis and the Myth of the Celebrity Stockpicker

Last week, I came across the following headline: “As music sales fall, sax player Kenny G turns to stockpicking.” My immediate reaction: Uh oh. The last thing any bull market needs is for celebrities to be featured in the financial press. As soon as that starts, it means the bull market must be near a…Read More

Category: Contrary Indicators, Investing, Really, really bad calls, Sentiment