Gold Stocks are a Portfolio Inoculation Against Coronavirus and Central Banks
1 month ago | Investing Strategies
As of late February 2020, the major U.S. indexes are down more than 3% — and gold stocks are up more than 3%. On a day when global equities were hit hard by coronavirus (COVID-19) fears, gold and gold stocks surged to brand-new, multi-year highs. That is not a coincidence. Gold miner profit margins are leveraged to the long-term gold…
The Zero-Cost Investing Model is Taking Over Wall Street
1 month ago | Investing Strategies
The zero-cost investing model is taking over Wall Street. Everywhere you look, the cost of participation is being driven towards zero. Fees and commissions are shrinking, to the point they nearly vanish. And when it comes to investing and trading via brokerage firm applications, the “zero” in zero cost is literal. For buying and selling stocks through various brokers and…
“Shippergeddon” Could Produce Big Gains Down the Road
2 months ago | Investing Strategies
Deep-value investors should take note of what’s happening in the global shipping industry. The outlook for shippers is so bad right now, you could call it “shippergeddon.” Conditions are full-on catastrophic, due to a triple-whammy of negative impacts. It isn’t time to act, but it’s time to keep an eye out. A horrible outlook for shippers now could produce significant…
Inflation Could Come Back Suddenly and Powerfully — Here’s How
2 months ago | Investing Strategies
Ken Griffin is worried about inflation. We are, too. The market is highly complacent in its low-inflation assumptions. Many assets are priced as if inflation will stay low for years or even decades. If inflation roars back suddenly, it could wreak havoc in treasury bonds, high-yield debt, overbought “safe havens” like consumer staples and utilities, and multiple other places. It…
The World is Drowning in Debt, and Nobody Knows What Will Happens Next
2 months ago | Investing Strategies
The world is drowning in debt, and nobody knows what will happen next. This is terrible news for fiat currencies, and excellent news for gold and Bitcoin. At a certain point, debt tends to beget more debt in a downward spiral with no way out. This generally happens for two reasons: First, because the debt load gets so heavy, relative…
Best of: Most Stocks are Duds (But You Can Win Anyway)
3 months ago | Investing Strategies
Editor’s note: We come across a lot of research, and the study performed by Hendrik Bessembinder earlier this year was one of the most eye-opening we’ve seen. If you have a poorly performing stock in your portfolio, hoping it might make a comeback, here is some bad news: That comeback isn’t likely. Most “dud” stocks tend to stay duds. Not…
The Man Who Always Says “No”
4 months ago | Investing Strategies
Imagine having a man who works for you whose only job is to say “No” to things. There is nothing else this man would do for you. He wouldn’t answer your phone, or help you with spreadsheets, or offer you assistance of any kind. If you asked for the slightest bit of help outside his job description he would just…
Conventional Investment Advice is Like Dieting Advice (All Over the Map and Terrible)
5 months ago | Investing Strategies
There are few things more obnoxious than dieting and nutrition advice. The more you dig for answers, the more confusing things get. The findings conflict with each other. The recommendations are all over the map. For example, one guy, a doctor or a Ph.D., tells you whole wheat grains are a bedrock staple. Another Ph.D. says grains are toxic for…
Buffett’s Silence Speaks Volumes as He Sits on a Mountain of Cash
5 months ago | Investing Strategies
When it comes to sky-high market valuations, Warren Buffett doesn’t have to speak. His mountain of cash does all the talking. “Sky-high” was the exact phrase Buffett used to describe market prices earlier this year. In spite of hoping to make an “elephant-sized acquisition” — another Buffett phrase — Berkshire’s Hathaway’s cash pile has swelled to a record-busting $128 billion….
How Cycles and Position Sizing are Connected
5 months ago | Investing Strategies
We’ve been talking about cycles for the past few weeks. You can get a refresher here: What Investors and Farmers Have in Common: The Enduring Power of Cycles The Lotka-Volterra Equations: Nature’s Ode to Boom and Bust The WeWork Implosion is a Spectacular Example of a Cycle Top (and Era’s End) Today, we’ll explain how cycles and position sizing are…
