For public companies in the US, what is the breakdown by state and then by sector, as measured by market capitalization: Quite a graph. Some states are like the US Average Sector mix, and some are very different. This set of two graphs will tell the story: These are broad generalizations, but why are...
Read more »
I haven’t written about my portfolio management methods in a while. I’ll be writing on this a few more times over the next week or so. The eighth rule of my investing is: Make changes to the portfolio 3-4 times per year. Evaluate the replacement candidates as a group against the current portfolio. New...
Read more »
I’m working on my quarterly reshaping — where I choose new companies to enter my portfolio. The first part of this is industry analysis. My main industry model is illustrated in the graphic. Green industries are cold. Red industries are hot. If you like to play momentum, look at the red zone, and ask...
Read more »
Filed under: Forecasts, Bad News, Industry, Financial CrisisWhile many consider technical analysis to be voodoo -- especially academics -- the fact is that fundamental analysis is far from perfect either. Hey, how many economists and stock analysts pre...
Read more »
In a recent post, Felix Salmon of Reuters asks the question “Should ETFs be allowed to include illiquid stocks?” He notes:I do think that a lot of investors like...
Read more »
So long as we’re looking at long-term home values, we may as well continue the history lesson by also observing the last century-plus of stock market performance.And, err,...
Read more »
Illiquidity is an underrated risk. Most financial company failures are due to illiquidity, which usually takes the form of too many illiquid assets and liquid liabilities. Adding to the difficulty is that it is generally difficult to price illiquid assets, because they don’t trade often. So where do we see failures due to illiquidity?...
Read more »
Filed under: Market Matters, Economic Data, Federal Reserve, CurrencyA new fear gripped the market Friday. Originally, gross domestic product -- the broadest measure of economic activity -- was reported to have grown 2.4% in the second quarter. Now, ma...
Read more »
1) Kind of like my thesis that the States give a better picture of the economy than the Federal Government, I agree with the idea that small banks better represent that health of the US economy. Most small an medium-sized businesses rely on small banks. Growth in employment relies on small and medium-sized businesses,...
Read more »
1) I am not a Treasury bond bull, per se, but I am reluctant to short until I see real price weakness. And some think that I am only a fundamentalist value investor. With bonds, it is tough to catch the turning points, and tough to grasp the motivations of competitors. Better to miss...
Read more »
TweetMeme – Finance