Category Archives: Investment Management

November 16

The Rule of 72

By David Nelson, CFA CMT Wall Street loves complex theories of why an asset class will outperform or head south. We tear apart income statements, balance sheets and parse every word from the FOMC. We run thousands of back tests on multi-factor quantitative models diving through virtually every data point that relates to a company, commodity, fixed […]

November 10

Rational Exuberance

Rational Exuberance – Coming into the week the spread between $QQQ and $RSP was 40% – Reversion to the mean is a powerful force

November 02

Red October

In the long run stocks care about cash flow, earnings, dividends and revenue in that order.

October 26

Biggest risk for the market – It’s not what you think

The truth rarely lives on the extremes. Unless we’re about to unwind hundreds of years of economic data and history, long term equity returns are driven by earnings, cash flow, dividends and revenue in that order

October 05

Is Market Cap Becoming a Liability?

SPY vs IWM vs RSP – Investors are desperate for some new blood to do the heavy lifting

September 28

Bizarro World

Bad is good, up is down and the world is square. Lower earnings = higher stock prices, deficits better than surpluses and long term debt drives prosperity. $SPY $TLT

September 14

Situational Awareness

By David Nelson, CFA I’ve been a pilot for most of my adult life and I can tell you with some degree of certainty that situational awareness or recognizing your positioning and the threats around you is key not just to flying aircraft but almost anything that requires swift reaction times to changing data. Even […]

September 08

DOT.COM REDUX?

As a veteran of that war I can tell you… $SPY #dot.com $QQQ

August 03

Top Heavy Market – Should Investors Be Concerned?

By David Nelson, CFA CMT Last week capped off another powerful month for the broad indices setting up a potential challenge to the all-time S&P high set in February. Of course, the NASDAQ is already there in large part powered by the 5 largest companies (APPL, MSFT, AMZN, GOOGL & FB) that all hit highs […]

July 29

Chapter II – 3 Steps to save capitalism

By David Nelson, CFA In Chapter one the first of three steps needed to save capitalism, I focused on taxing capital the same as income. As stated, eliminating the preferential treatment of capital gains isn’t going to solve income inequality and I’m certain that shouldn’t be the goal. There will always be a gap between the successful […]