Watching Tech’s Weighting In The SPX

The weekly Market Update is posted at Alpha Baskets and includes the following; Barron’s had some interesting information on tech’s current weighting in the S&P 500 as follows; “Today, tech stocks make up 23.1% of the S&P 500, above the historical average of 15.4%, and fast catching up to the 26.5% combined weight for the six smallest sectors. While 23% still looks innocuous compared with a 34% weighting at the tech-bubble peak, Bespoke Investment Group reminds us that tech’s weight didn’t exceed 23% until September 1999, and has spent only a few months above 23%.” Please click through to read the entire update. Search and Rescue quad taken in 2014 Arizona Diamondbacks home game 2015 Milan, Italy tucked behind the Foot Locker...

It Turns Out Brazil Has Political Problems

My latest post for Alpha Baskets looks at the shenanigans in Brazil and includes the following; Paraphrasing Lloyd Bridges from the movie Airplane, Brazil picked the wrong week to quit sniffing glue as news of an alleged incident implicating President Michel Temer with bribery sent the benchmark Bovespa index and the real reeling on Thursday. When the dust settled on Thursday the Bovespa was down about 9%… Please click through to read the entire post. A Unimog inspired RV at the Overland Expo in Flagstaff from earlier in May. It resembles a lot of Type 3 wildland fire trucks. The front end of a Defender...

Political Volatility Catches Up To Markets (Kind Of)

The weekly Market Update is posted at Alpha Baskets and includes the following; The year to date decline of the US Dollar Index (DXY) took a steeper turn last week down to 97. It was just a few months ago at 103 that we talked about that level being the historical upper end of the range. Bullishness for further gains was plentiful but sometimes past resistance wins. The DXY is a long way from any downside support as significant as 103 has been to the upside. The DXY was at 80 in 2014. There are positives and negatives to a dollar trending lower including foreign equity holdings providing the currency appreciation tail wind for investors. Please click through to read the entire update. Auckland, New Zealand February 2012 University of Phoenix Stadium hosting Copa America last June Horny toad here in...

Gigging Your Way To A Successful Retirement

My latest post for Alpha Baskets is up and includes the following; In last week’s post about tiny houses I mentioned my belief that a young person living this lifestyle exclusively is more likely than not to wake up one day at 40 without much accumulated and without much in the way of marketable skills. Doing gig work on the side, as a young person, is a different story. At the end of the work day, why not Uber someone from close to your work to close to where you live? You’d cover your commute expense. Please click through to read the entire post. 1984 Toyota Land Cruiser FJ 43 Defender 110 A funky Land Rover 101, never seen one...

The Denial Trade?

The weekly Market Update is posted at Alpha Baskets and includes the following; Another word we could have used in the above paragraph is complacency which is supported by the low VIX. Also supporting the complacency thesis is a fun fact from Goldman Sachs, via Barron’s, who points out that implied option volatility on one of the larger tech sector ETFs is currently less than implied option volatility on one of the larger utility sector ETFs. On the other side of the complacency trade, we note several retailers have been punished for bad earnings along with the pounding taken by the funny filter app stock in the middle of the week. We can’t say we have seen this movie before but we still have an idea of how it ends even if we don’t know when it ends. Please click through to read the entire update. Over the weekend I went to the Overland Expo West in Flagstaff. I’d never heard of it before last Wednesday, it’s an extreme adventure type of thing with some very neat vehicles and some interesting stories to go with those vehicles that should make for a blog post or two. Sweet 1996 (I think) Humvee that is for sale for $125,000. They don’t come much more orange than this Defender 110, look at that! 1978 Toyota Landcruiser FJ 40 asking in the...