When times are good the economy is strong and everyone has more money to spend. So is there any relationship between consumer spending and the stock market? A new research paper suggests there is and provides a novel way of measuring consumer spending on a daily basis. Instead of looking at more traditional measures (such […]
One of the hardest things to do in investing is to buy the market as it makes yet another new high. Intuitively it makes little sense. The only way to profit in the stock market is to sell something for more than you paid for it so why would you buy something that has been […]
Some investors focus on momentum stocks. Some look for value. Contrarian traders search out for the most hated or worst performing stocks. Recently, I came across the following graphic from Bloomberg which shows the 2017 performance of the 10 most shorted stocks in Asia:
I try to keep Marwood Research topped up with new trading strategies every month. This month, another interesting investment strategy has been added to our program called Mid Cap Winners. Mid Cap Winners is a medium term investing system designed for the mid cap space with an average holding period of around 60 days.
Sluggish growth and anaemic inflation has seen global commodity prices fall steadily in value since 2008. Because of this, and with stock markets reaching new record highs in 2017, commodity trading has gone out of fashion. Yet in the past, commodities have provided a good source of returns for both investors and active traders. Furthermore, […]
In this article I look at some interesting new research from Haoyu Xu that can be useful for both momentum investors and reversal traders. The research finds that morning returns positively predict next month returns (momentum) while afternoon returns negatively predict next month returns (reversals).
Blair Hull is a legend of Wall Street and a former professional blackjack player. He was named by Worth magazine as one of Wall Street’s 25 smartest players and by Forbes magazine as one of the most successful traders of the last 40 years. Today, Hull operates a number of ventures including an ETF that attempts […]
Last week I received an email courtesy of the StockTwits newsletter with the headline ‘This Market Is Confusing Everyone’. Apparently, because the market has fallen, gone up, and then fallen again (in the space of a few days) investors are totally confused and the market is ‘faking out everyone’. Unfortunately for the headline writer, this […]
The stock market cannot go up forever. At some point there will be another stock market crash and as always there will be some winners and some losers. In this article, I look at some techniques investors can use during a market crash and reveal two interesting strategies based on a recent academic paper. Tactics […]
In this article I implement Ray Dalio’s All Weather portfolio using popular ETFs and I back-test the strategy using Amibroker. The results show nice risk-adjusted returns for investors.