November 2013

Rearranging Your Thoughts on Which Sectors are “Risky”

Earlier this year, everyone in investment universe seemed to be plowing money into funds and products marketing the low volatility anomaly. There were a host of new “low-vol” strategies launched and a handful of ETFs, all of them showing the decades-long superiority of low beta strategy. Those with a quantitative background immediately recognized what was…

Lo Siento

”Bank on the trends and don’t worry about the tremors.” – J. Paul Getty It’s absolutely true that most developments in the market are totally irrelevant and most of the stuff people are writing and talking about is more interesting than it is actionable. That includes many of the links and stories you’ll find on this site…

the only rules are there are no rules

A quick lesson about what’s supposed to happen and what will actually happen, contained in a handful of tweets… Airline stocks up 9% last month and 28% year-to-date, the second best performing industry group of 2013. And look ma, no ETF. — Downtown Josh Brown (@ReformedBroker) November 2, 2013   Metals & Mining stocks are…

This Week on TRB

Here were the most read posts on TRB this week, in case you missed them: Three Reasons Buffett’s Not Buying Why the Bulls Aren’t Doing Coke I know that we the New Slaves Stock Tribes Keep the Economists off the Trading Desk      

by the way…

Some quick afternoon links to take you into the weekend… Warren Buffett was dead right about stocks five years ago, but oh how he was mocked.  (WSJ) Morgan Housel: Don’t worry to much about being more intelligent, focus instead on being less stupid.  (MotleyFool) All of a sudden Oracle shareholders give a shit about Larry…

Before Buzzfeed…

Why do humans love lists (and listicles online)? My take is that when something says “10 ways to…” or “5 reasons why…” you are apt to click on it because you have a predefined sense of how much time it’s going to take you to get through it. Lists are easier to read because you…

A reasonable explanation for the upward tilt of US stock PE ratios

One of my whip-smart readers, Cathy Leow, wrote in a really interesting take to explain the gradual and undeniable upward tilt for the PE ratios of US stocks in recent years. Cathy was formerly an economist and then a grains trader, she’s been analyzing and investing in the equity markets since 2005. I thought this…

Barry Joins Bloomberg View

Sorry for the late start this morning, call it a Halloween hangover from all those mini Twix bars. Anyway, I’m very excited for Barry and his new deal with Bloomberg View, just announced this morning… BARRY RITHOLTZ JOINS BLOOMBERG VIEW November 1, 2013 NEW YORK — Bloomberg View today announced that Barry L. Ritholtz is…