The Blog

Don’t Do This

Various companies began tracking investor behavior 20 years ago and the results are in. Mostly, people are terrible at investing.  Whether looking at data about day traders, or the aggregate results of mutual fund holders, the same story is told.  Typical investors make the same pattern of mistakes.  We are doing our part to create

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Does The Low VIX Mean A Disaster Is Pending?

The CBOE Volatility Index (“VIX”) usually moves inversely with the stock market, and exponentially so. As such, it’s become a favorite indicator for market speculators. Lately, the VIX has been hitting multi-year lows, leading some to believe that a reversal must be imminent. Were that to be the case, the implication is a falling stock

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What’ll Happen To Detroit Muni Bonds?

It’s hard to miss the news that the City of Detroit, Michigan is trying to file for bankruptcy. It brings up questions…. Is this the first of many municipal failures to come? If I own Detroit muni bonds, am I sunk? What should I do with them? There’s plenty to learn in this week’s Market

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My Favorite Blogs and Twitter Feeds

This week, Bill Valentine shares his Top 5 online blogs and Top 5 Twitter feeds, to help you stay abreast of developments in the markets and economy.

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Good Job, Uncle Ben

Seven weeks ago, Federal Reserve Chairman Ben Bernanke hinted at the possibility of the end of Quantitative Easing (QE).  Market’s freaked out, as markets are wont to do.  We said at the time that this was an intentional intimation, and that in fact, it was a tool of the Fed Chair, as important as the

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The Market Is Like A Petulant Child

This week, the Federal Reserve continued its strategy of giving very advanced warning that its extraordinary easy policy will eventually be wound down, as we discussed in our “Market Message” on May 31, “The Worm Has Turned.”  This is fundamentally good news. It affirms the Fed’s awareness of the need to stop bond buying, and

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Bernanke’s Hurt Locker

There is no more important issue facing our economy, indeed the world’s economies, and the future performance of the markets than the reversal in Fed policy that will happen over the next several years.  The stakes couldn’t be higher. Do too much, put us into contraction.  Do too little, create inflation. For now, the duty

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The Worm Has Turned

A few days ago, Federal Reserve Chairman Bernanke took what I believe to be the first step in ending Quantitative Easing (the massive money creation / bond buying program dating to the depths of the Financial Crisis).  Chairman Bernanke’s seemingly subtle mention that the Fed will stop easing if the economy continues on its current

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Sell In May and Go Away? Pffffft!

Investing is complex.  It stymies even the most seasoned investor.  In order to create meaning from the randomness, investors sometimes employ mental shortcuts known as “heuristics.” A perfect example is the adage, “Sell in May and Go Away.”  This advice suggests that investors exit the market every year before Summer, and reenter by December, to

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I Could Be A Great Scammer

In this “Confessions…” Bill Valentine talks about his obsession with Financial Scammers.  But don’t worry, he’s doesn’t aspire to be one, but rather, wants you to give thought to the conditions that create the opportunity for this timeless transgression. Watch to learn about to look for so that you won’t be the next victim of

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