The Blog

The Volatility Is Too Damn High Party

While the title of this week’s Market Message is a humorous play on The Rent Is Too Damn High Party, there is no doubt that the market’s volatility in the past 4 years has got investors skittish and uncomfortable.  What’s more, the frequency of large daily declines (2% or more) is somewhat unprecedented. This only

Continue Reading

Is Dividend Yield Investing Thru ETFs Worth It?

I recently received a great question from a client regarding the advisability of investing in high-dividend yielding ETFs.  With these types of ETFs being made up of stocks from the utility and financial sectors, I find that the performance of the sectors determines more of the return than the yield itself. The concept of high-dividend

Continue Reading

Trick or Treat? Nope, Just Increasing Beta

In watching the markets, I’ve been hinting that conditions might be right to increase a portfolio’s sensitivity to the market, also known as increasing the beta. Check in as I explain how the current market environment rhymes with historic market conditions (1962, 1987, 1998), how the panic corrections might just be over, and how risk

Continue Reading

“The Era of Lower” and The End of The Secular Bear Market

Markets move in long-term secular cycles…in this current day and age, which I have coined the “Era of Lower”, what will it take to move out of this secular bear market into a secular bull phase? Lower P/E’s are key, as well as the public “giving up” on equities in favor of other asset classes. 

Continue Reading

Three Signs That Markets May Be Improving

Over the past few days, there have been a couple of indications that markets might be improving…. cash is moving out of money market funds technical indicators have changed direction volatility has possibly broken its fever pitch as it returns to its more natural state at the low end of the spectrum. Is it time

Continue Reading

Trading Volatility….ETNs vs. ETFs

After revisiting the idea of a Bear market for risk assets, Bill takes a look at one of the latest volatility instruments from ProShares to hit the markets, SVXY. Similar to the XIV in performance, Bill looks at how SVXY might hold some other advantages as compared to XIV due to its structure as an

Continue Reading

The Pitfalls of Market Timing

  If you’re a long time follower of mine (I’ve now been writing and speaking on the topic of investing for almost 14 years, and now on Twitter) you know if there’s one thing I’ve warned against the most frequently, it’s market timing.  Market timing is the act of wholesale moves into and out of

Continue Reading

A Bear Market for Risk Assets and the Importance of Bonds

The last day of the Third Quarter and markets are ugly, there is no doubt about it. Bill sees a bear market for risk assets developing, shares some of the risks involved in exiting and re-entering markets like these, and why having bonds in your portfolio is important. To view this video on YouTube and

Continue Reading

Addressing The Markets Of Late…

I rarely do this, but this week in my blog, I’m sharing part of a recent communication that went out to clients about the recent market downturn.  It doesn’t reference any proprietary investments or trading instructions.  Rather, I’m sharing with you some of the fundamentals all investors can benefit from.  – BV Allow me to

Continue Reading

A Quick Market Update and Volatility vs. Volatility ETF’s

For the week of September 9, 2011, Bill provides a quick market update, looking at some improving technicals that might point the way to the future direction of the market. After that, Bill looks at the Volatility Index (VIX) and the long volatility ETF (VXX), and how “backwardation” and “contango” present inherent risks to their

Continue Reading