Is Barron’s Right About Options Funds?

My latest post for Alpha Baskets looks at a recent Barron’s piece on options funds. From my post; First thing is that I think moving assets earmarked for fixed income into equities, even low volatility equities with high yields is something destined to end badly. I’ve made this point countless times before, equities with low volatility still have a lot more volatility than most bond funds and individual bonds. An equity that goes down 25% in a down 50% world is a good relative result…. for equities, but not so for the typical fixed income portfolio. I think many of individual investors doing this are overestimating their tolerance for volatility and advisors doing this will be having some painful conversations with clients. Please click through to read the entire post. An old American LaFrance at the Hall of Flame Museum in Phoenix. Lowell, AZ is a one road “ghost town” in Bisbee. Several of the store fronts have old motorcycles in the windows. An old Dodge filtered on Instragram...

Who Is Stan Fischer & Why Does He Hate The Stock Market?

This week’s market update is posted at Alpha Baskets and includes the following; There was also odd news from the multi-year Bill Ackman/Carl Icahn feud. News hit early Friday that Icahn’s broker was looking for a buyer for some of his shares and Ackman despite being short was interested in buying some of Icahn’s stake as getting Carl out would ultimately be good for his short position, or so he said in an interview on CNBC. All of this drove the stock down 4%, then after the bell more news broke; Icahn actually increased his position. There will likely be more to the story but it struck us as immediately odd that Icahn’s broker would shop the position on the front page of the newspaper. Please click through to read the entire update. From a neighboring fire department. An El Camino from a car show early in August. A buggy from the Mint 400 last March....

Alternative Context

My latest post for Alpha Baskets looks at misconceptions about how to look at alternative strategies. Alternatives may or may not be for you but that decision should be made in the correct context. From the post; I believe this is absolutely the wrong way to look at alternatives. This is a point I have made many times before but alternatives are for providing diversification against extreme market events like the stock market cutting in half or if there is ever a comeuppance in the bond market for years of shockingly ow rates. Please click through to read the entire post. The local Hazmat Team, which has personnel from several local departments, will be getting a new rig. It came from Rosenbauer but is being finished locally. Old Jeep at a recent car show with a serious Arizona-themed paint job. Motorcycle with a sidecar....

The Olympic Vacation Is Over

This week’s Market Update is posted at Alpha Baskets and includes the following; With Q2 earnings season just about over, Yahoo Finance reports that although the beat rate (results versus estimates) was strong, earnings fell 3.9% and revenue declined 1.0%. The history of earnings recessions leading to economic recessions is not good so it will be interesting to see if negative interest rates and the lack of a true tightening cycle serve to alter the cause and effect. Please click through to read the entire update. Instagram has a new companion app called Layout that allows for some neat things including the following;  ...

The Worst Months Of The Year!

My latest post at Alpha Baskets looks at stock market seasonality and includes the following; If the “worst” months of the year are only down about half the time, then any belief or desire to shift the portfolio based on the calendar is nothing more than a guess. No one can know what the market will do. History can be something of a guide but tendencies are far from infallible, forward looking guarantees. Please click through to read the entire post. Ratrod! Oldsmobile...