Tag Archives: asset allocation

The Stock Market Is For Speculation, Not an Income Source

Everyone in financial media is now talking about Vanguard and how it controls more than 80% of the money invested in index funds. Have investors forgotten the recent brutality of the stock market or are they just convinced that another … Continue reading

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Gold Outperforms Technology Year-To-Date

The holiday-shortened week marked a significant change in asset performance with gold outperforming technology on a year-to-date basis. This impacts diversified portfolios.

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Diversified Portfolio Performance in 2016

The Price Action Lab Diversified portfolio ended the year with a gain of 9% and ranked second best among 29 well-known portfolios.

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Trading Vs. Investing: The False Dichotomy

There are many who confuse these two: trading and investing. Some even offer trading disguised as investing. Even worse, some try to convince us that we should do one or the other. This clash is mostly motivated by marketing and … Continue reading

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Take Market Timing Model Research With A Grain Of Salt

Taking market timing model research with a grain of salt applies to both academic and practitioner domains. In addition to data-snooping and selection bias, there may be other subtle issues with reported results. For example, a recent paper claims there … Continue reading

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Asset Allocation Models Based on Moving Averages Are Dumb

Asset allocation models based on moving averages are dumb in the sense that they cannot adjust to changing market conditions. They are also risky because they reflect wishful thinking. Below is my analysis for open-minded individuals who place reason over … Continue reading

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Follow the Money, or Not?

Stock indexes are flat this year so far but biotech, gold, real estate and bonds are already generating high returns. Investors are diversifying but risks are increasing.

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