Investing In Range Bound Markets – according to Vitaly Katsenelson: (1) Trade More Actively (2) Increase Your Margin Of Safety (3) Hold More Cash (4) Buy Dividend Paying Stocks – 90% of the returns in range bound markets come from…
In 1974, the great financial analyst Benjamin Graham wryly described the efficient-market hypothesis as a theory that “could have great practical importance if it coincided with reality.” Mr. Graham marveled at how Avon Products, which traded at $140 a share in…
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I really respect David Einhorn because he has evolved from a pure value investor into recognizing the importance of macro. Anybody who doesn’t recognize that at this point is going to pretty useless going forward. Buy great companies with high…
Nothing new here in a Sunday New York Times piece by Robert Shiller, “An Echo Chamber of Boom and Bust”, but it’s always worth remembering that the stock market is people: THE global signs of a recovery in economic confidence…
Alice laughed: “There’s no use trying,” she said; “one can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was younger, I always did it for half an hour a day. Why, sometimes I’ve believed…
(Via Infectious Greed)
MOMENTUM is one of the great puzzles of finance. It is the tendency for stocks that have previously risen to keep going up. Of course, it does not square with efficient market theory, which states that past price information tells…
I walked into the office yesterday evening and there was someone on CNBC talking about how the 50-day moving average of the S&P 500 rising above the 200-day moving average was telling us the market was getting ready to rise…
The Yale model is probably “true over time. But in calendar ’08, it’s exactly wrong. The less liquid you are, the more you’re getting hurt. – Swensen protege David Salem Cooper Union’s endowment is going to be flat or slightly…