Investing

>In academic terms, or in terms of the Capital Asset Pricing Model, known as CAPM, the risk of owning the market is called systematic risk. Nowadays, as one financial institution after the other seems in danger of collapsing, we hear much about systematic risk. Nevertheless, for professionals who try to manage risk in portfolio construction, it seems like a good [...]

>Economic data took another hit today as the payroll numbers came in showing no growth. Yep, I’ll say it again, zero growth in non-farm payrolls! Those encouraged by a few data points the last few days are rethinking whether or not there could be a business cycle change occurring right now. At the moment, we’ll stick with our high probability [...]

>We continue to believe that the stock market has likely entered a new bear market and have positioned our portfolios to outperform if further market declines are in store. However, with short-term technical indicators signaling oversold conditions when the S&P 500 dropped to 1100 in early August, we decided to wait for a bounce to slightly modify our more aggressive [...]

>Since we’ve moved to a much more defensive investment position over the past few weeks, we are watching very closely and trying to keep an open mind that we could in fact be wrong with our change in call. The stock market is now bouncing, with the S&P 500 up about +8.5% from the August 8th low through yesterday, which [...]