News media is in the amygdala business. The amygdala is our fear center. Turn on the news. What are they usually talking about? Death, terrorism, financial markets in turmoil. Anything and everything that stimulates your amygdala and fires up your fear response. Regular news media viewers fall prey to the Mean World Syndrome. They believe [...]

The irony of this post is not lost on us. An active manager excited about another active manager moving more towards factor and algorithmic based investing. On Tuesday, BlackRock laid out an ambitious plan to consolidate a large number of actively managed mutual funds with peers that rely more on algorithms and models to pick [...]

The Dow Jones Industrial index is suffering it's longest losing streak since 2011. That is a dire-sounding headline. The Dow Jones must be suffering large losses. The 8-day losing streak, it ended Monday with a positive trading day, produced a whopping 1.9% loss. That big 2011 losing streak produced a loss of 6.7%. The financial news [...]

Dividend to Avoid: GameStop (GME)

GameStop looks like a bargain. A trailing twelve month PE ratio of 6.39. A current dividend yield of 6.33% with a payout ratio of 38%. As a dividend growth investor, we want to invest in companies with long runways for growth. This allows us to collect a rising income stream for many years. We don't [...]

Another confirmation bias post. Glenn Greenberg of the Brave Warrior Fund was on CNBC stating their case to be long financials. Market Folly has the notes. - Long financial stocks JPMorgan (JPM), Primeria (PRI), and Charles Schwab (SCHW). "We made a big bet that normal interest rates would not stay at zero. It was that [...]

Morningstar making the case for a long-term investment in Railroad stocks. One of the big reasons is taxes. The railroad stocks are not multinationals. They only operate in the U.S. and they pay the U.S. corporate tax rate. UNP Effective Tax Rate (Annual) data by YCharts If President Donald Trump does indeed cut corporate taxes, [...]

Each position in your portfolio has a target weight, or ideal position size based on initial purchase. Around a position's target weight we also assign a minimum and maximum tolerance band. Since positions are in constant fluctuation, the tolerance bands allow us to minimize trading costs during typical re-balancing, and focus on areas that have [...]

2017 Predictions & 5 Years in Review

With the new year we're going to make our annual prediction about the U.S equity markets. But first we want to revisit some of the more memorable market predictions of 2016. On January 11, 2016 Andrew Roberts, a strategist at the Royal Bank of Scotland declared the following. Sell everything except high quality bonds. This [...]

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