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 […]
Category Archives: Investment Management
November
10
Rational Exuberance
posted by David Nelson, CFA
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
posted by David Nelson, CFA
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
posted by David Nelson, CFA
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?
posted by David Nelson, CFA
SPY vs IWM vs RSP – Investors are desperate for some new blood to do the heavy lifting
September
28
Bizarro World
posted by David Nelson, CFA
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
posted by David Nelson, CFA
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?
posted by David Nelson, CFA
As a veteran of that war I can tell you… $SPY #dot.com $QQQ
August
03
Top Heavy Market – Should Investors Be Concerned?
posted by David Nelson, CFA
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
posted by David Nelson, CFA
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 […]
