Category Archives: Risk Management

Fear of a Small Correction Replaces Stock Market Greed

The stock market had a down day yesterday and that caused fear to return and take the place of greed. Investors on leverage hope that a consolidation will take place near the all-time highs. If the consolidation level changes towards … Continue reading

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Diversified Portfolios Suffering From Falling Energy Prices

The Price Action Lab 50-30-10-10 diversified ETF portfolio in SPY-TLT-GLD-DBC is suffering this year from a sharp decline in the energy sector, returning 11.46% YTD while SPY and TLT are up 14.2% and 22.3%, respectively. But selling commodities to load … Continue reading

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High Bond Market Returns Offset Commodity Losses of Diversified Portfolios

The high bond market returns this year so far make up for losses of diversified portfolios in precious metals and commodities. The Price Action Lab diversified ETF portfolio is up 9.5% YTD, 2% lower than the SPY buy and hold return. Share

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End of Year Portfolio Reallocation Panic

Fund managers are selling precious metals, energy and commodities as we are approaching the end of this year in order to avoid underperforming the SP500 during the next rolling two-year period. Bonds are not yet affected but they may be soon. Share

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Market Days Like Yesterday Are True Gifts

When the market opens 1% down but then recovers most of the loss, this is a gift to most traders from nervous market participants who ignore the FED and pay attention to what is going on with some Portuguese bank. This … Continue reading

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