Due Diligence An Anniversary and Some Words on Garbage Posted on March 7, 2017 By Matt This week marks the anniversary of the bull market whether you measure from the intraday bottom on 3/6/2009 or the day’s closing bottom on 3/9/2009. It’s not as simple as all that, though. After a 19% annualized gain or over 300% cumulative, it’s hard to ignore claims that the market… Read more
Due Diligence Pick Good Funds Posted on October 25, 2016April 13, 2017 By Matt The Wall Street Journal and the financial community have been abuzz about passive investing. I wrote about settling for average and outrunning a bear via active management previously. The newest argument for choosing active management over passive is that investors should choose ‘good’ managers, not average or bad managers. Why… Read more
Due Diligence The Angels’ Share Posted on September 14, 2016April 13, 2017 By Matt As a whisky (whiskey here in the States) matures, it loses about 2% of its volume to evaporation each year. Distilleries call this The Angels’ Share. They fill oak casks with a precious liquid knowing that each year part of their hard work will simply disappear. I can’t help but think… Read more
Due Diligence He Called It Posted on August 26, 2016 By Matt He called 5 market crashes and now has three more dates for you to worry about. Technical analyst Sandy Jadeja is predicting financial devastation on three dates. Well, now that I read the article, he doesn’t really say that at all, only that there will be sharp market movements in… Read more
Due Diligence The Tyranny of the Calendar Posted on August 8, 2016 By Matt We are all beholden to the tyranny of the calendar. Monthly or quarterly account statements tie a nice bow on a period of time, but can lend false significance to a time period’s returns. If you’ve got a brokerage account or 401(k), you probably got a statement ending on 6/30/2016. As… Read more
Due Diligence Six Degrees Posted on May 20, 2016 By Matt There’s a theory/urban legend that everyone is just six degrees of separation from knowing every other person on the planet. I prefer the Six Degrees of Kevin Bacon theory that every actor is six degrees (or less) removed from working with Kevin Bacon. For example, Sean Connery is two degrees… Read more
Due Diligence Peer to Peer Lending Posted on March 15, 2016 By Matt Fear is an investor’s constant companion. We are supposed to be greedy when others are fearful and fearful when others are greedy. However, fear seems to loom largest when the markets are down and fades away when markets are up. Pain of past losses gives birth to new fears that what… Read more
Due Diligence Carnival Barkers Posted on January 29, 2016April 13, 2017 By Matt “Step right up, folks! Hurry! Hurry! Hurry! You are mere moments away from learning a secret so massive, it could undermine our very way of life! Please move in closer so everyone can hear! Tell your family! Tell your neighbor! Act now and I’ll throw in a free American flag,… Read more
Due Diligence January Effect Posted on January 8, 2016 By Matt By now, you’ve heard that the US stock market is off to the worst start to a calendar year ever. This is the sort of news that is trumpeted far and wide as humans are wired to value and pass along bad news (and to elevate the status of those… Read more
Due Diligence Goofy, Esoteric Securities are a Red Flag Posted on December 18, 2015April 13, 2017 By Matt Financial entertainment got a holiday gift with the fiasco surrounding the Third Avenue Focused Credit Fund. The fund halted withdrawals amid investor outflows which was “shocking” according to Barron’s. The sharks are circling as the media has had easy filler content – “Worried About Your High-Yield Bond Fund?” and so… Read more