How to Counteract First Impression Bias
Aug 14, 2019 | Investing Strategies
Human beings are naturally wired to make quick judgments. Studies have shown that, when meeting someone new, a first impression can form in as little as a tenth of a second — and the impact can last for the life of the relationship. “First impression bias” is a problem on Wall Street, too. It impacts everyone from individual investors to…
How stocks could rise another 50% by 2025
Aug 09, 2019 | Investing Strategies
Last week we asked, “What if U.S. long-term rates go to zero?” To briefly recap: In countries like Japan, Germany, Switzerland, and others, the mountain of bonds with zero or negative interest rates just keeps getting taller. As of this week, it is now above $15 trillion. When long-term interest rates are zero or negative, that indicates something is very…
What a 200-year-old fish market says about the future of investing
Aug 07, 2019 | Investing Strategies
Paul Tudor Jones, one of the greatest hedge fund managers of all time, said this a few years ago: “No man is better than a machine, and no machine is better than a man with a machine.” Jones was talking about the power of software, algorithms, artificial intelligence, and machine learning as applied to investing. But his deeper point was…
What if U.S. long-term rates go to zero?
Aug 02, 2019 | Investing Strategies
What is going to happen in the next few years? Where will markets go in the new decade that kicks off with 2020? What is the best way to position a portfolio for, say, the six-year window from 2020-2025? This is an incredibly important question. Getting it right — or wrong — could mean the difference between a well-funded retirement…
It’s true: Outperformance is concentrated in a shockingly small group of stocks
Jul 31, 2019 | Investing Strategies
If you have a poorly performing stock in your portfolio and you’re hoping it might make a comeback, here is some bad news: That comeback isn’t likely. Most “dud” stocks tend to stay duds. Not only that, it turns out that well over half of all stocks lose money — even during bull markets, and even over a time frame…
The Personalization Trend Is Taking Over
Jul 26, 2019 | Investing Strategies
Call it narcissism, or call it knowing exactly what you like — either way, today’s consumers crave products that fit nicely into personal preference buckets. These may be functional, ideological, or taste-based, pick your poison. To demonstrate, take a look at LikeFolio trend data on consumer demand for “personalized” and “just for me” products… As advertisers amp up their targeting…
Get Ready to “Navigate and Immunize” for the Coming Paradigm Shift
Jul 24, 2019 | Investing Strategies
As we get ready for 2020 and a whole new decade, there is reason to believe big changes are coming. The next 10 years of market activity could look wildly different from the last 10. Many investors will find themselves unprepared for this — but you can be ready. According to legendary hedge fund manager and macro investor Ray Dalio,…
Stocks to Watch After Prime Day 2019
Jul 19, 2019 | Investing Strategies
Prime Day has turned into the ecommerce version of “Christmas in July,” with discounts and deals as far as the eye can see. As shoppers log in and click their way to big savings, LikeFolio got busy analyzing consumer behavior to find out which retailers and device makers benefitted the most. Prime Day 2019 Sets Revenue Records Amazon reported that…
A Curious Father of Chaos Theory
Jul 17, 2019 | Investing Strategies
Mitchell Feigenbaum, a founding father of Chaos Theory, died at age 74 on June 30. Feigenbaum is worth remembering because Chaos Theory changed the face of scientific research, and in so doing, changed the world. As investors, you and I directly benefit from the insights of Chaos Theory to this day. Mitchell Feigenbaum helped bring those insights to light. At…
Solar Stocks Could Be Gearing Up For a Multi-Year Bull Run
Jul 12, 2019 | Investing Strategies
For more than a decade, solar energy stocks have been on a “solarcoaster.” This has made the ride uncomfortable for solar investors. But big things are happening behind the scenes — and solar stocks could be gearing up for a multi-year bull run. The “solarcoaster,” an industry nickname, is a boom-bust pattern created by government subsidies and supply gluts. In…