Grandma Got Run Over By A Dividend Portfolio

My latest post at Alpha Baskets looks at what has been presented as an unintentionally, wildly risk dividend portfolio. Forbes had a brief profile of an investor who appears to have tried to shoot the lights out with yield but there is not mention of the consequence that I think has befallen her. From the post; We’ve been looking at essentially this exact scenario for years here and this is a perfect example of assuming a lot of risk and potential volatility in a portfolio. Please click through to read the entire post. I am posting this from the Philly airport on my way back from Spain. Below is the train station in Malaga that I hopped on to get to Torremolinos...

Weekly Market Update

The Weekly Market Update is posted at Alpha Baskets and includes the following; Last week we looked at the selloff in the crude market and explored the idea of exhausted sellers or capitulation. While it is too early to know whether sellers truly are spent they did take a breather last week as crude had a very bumpy ride to a 1.44% gain for the week. Gold also rallied on the week by 3.63%. Please click through to read the entire update A picture from the town in Spain where I am visiting with my father that I filtered on...

In Search Of…The Better Portfolio

My latest for Alpha Baskets looks at attempts made by people to redefine what an investment portfolio should look like. The catalyst for the post was Barry Ritholtz’ torching of Tony Robbins’ (yes, that Tony Robbins) ‘All Weather’ portfolio and includes the following; That sentence has nothing to do with outperforming the market (although probably assumes truly stupid behavior is not repeated) it is simply about doing what your grandmother told you to do, save money and invest wisely (paraphrasing a quote from Nassim Taleb). Please click through to read the entire post. I am currently in Spain visiting my father who could use some good thoughts sent his way. This was a short notice trip, I left Arizona early Friday and got to Madrid Saturday at 8am local time but had a ten hour layover before my flight to Malaga. So I went into the city to take a tour of the Stadium where Real Madrid plays and then hit some of the old plazas that were packed because it was Constitution Day. I am headed back home on Friday. The first picture is obviously the stadium and the other is a funky building that I said on Instagram looks like something from Atlas...

The Importance of Avoiding Mistakes

My latest at Alpha Baskets it titled Learning From Mistakes Made By Pension Funds and looks at what could be thought of as behavioral mistakes they make, very similar to mistakes made by individuals. Of course we will all make investing mistakes, behavioral or otherwise but being aware of mistakes made in general and the ones you are most prone to should help you reduce the number of mistakes you make. From the post; The next time one of those periods comes along people will disparage index investing, seek out alternatives and suggest huge weightings to them. This repeats over and over with whatever is hot. As we’ve talked about quite a few times, how many articles did you read four years ago suggesting 20-25% in gold? Please click through to read the entire post.   Pips at Clear Lake looking at Mt....

Weekly Market Update

The Weekly Market Update is posted at Alpha Baskets and covers a lot of ground include the crash in the crude market, Switzerland’s decision to not impose a gold standard and a look at whether the global bond market is signaling deflation. From the post; Friday’s price movement amounts to a crash, crashes have often come close to the end of the decline as they have represented a capitulation. It may be difficult to find a catalyst to move the price back up in the near term but oil is unlikely to go to zero and it is reasonable to wonder if sellers are just about exhausted after an almost 40% drop in less than six months. The asset may be different, the numbers may be different but the manifestation of fear in the capital markets is not new. Please click through to read the entire...