“The Great Mandelbrot”

That is how Nassim Taleb described his first encounter with the work of Benoit Mandelbrot. My own encounter with his work occurred when I read his book, The (Mis) Behavior of Markets, A Fractal View of Risk, Ruin, and Reward. I was very saddened to learn last week that Mandelbrot died of cancer on October…

What’s a POMO, and Why Does it Matter?

Lately there’s been a new acronym running through investment research we have been reading, and it is “POMO.” POMO stands for Permanent Open Market Operation. When you hear the Fed is executing a POMO for a certain amount, they are simply buying Treasury securities and the proceeds add reserves to the banking system permanently, as…

A Bullish Contrarian Bonanza

Lately I’ve been considering that fact that “informed intuition” about investment markets, the very stuff we hope to warehouse in large quantities at Pinnacle, can be tainted by any one analyst’s appetite for risk. We train ourselves to see bullish and bearish investment opportunities when they appear, and with training our goal is to see…

Banks

We were tossing around a question yesterday regarding the current stock market rally from the July lows, and whether it can continue without the banks participating. The banks in this discussion are the big boys – JP Morgan, Citigroup, Bank of America, Wells Fargo, etc. The S&P 500 is up 15.5% from the July low…

The Bullish Case

If you are feeling skeptical and concerned about the economy and the stock market, don’t worry. You have plenty of company…unless you are an institutional investor who is being whipsawed between bearishness and bullishness from month to month. You should know that if by the end of this missive you don’t believe the bullish case…

October Thoughts about Seasonality

Market seasonality has probably been more of a factor in our decision making of late than it should. Rick wrote about it in this space last week. To make that statement in a year where “Sell in May and go away” has proven to be a perfect timing indicator might seem a little harsh. In…