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A Beating on Good News

The week began with a few big mergers in tech and healthcare. Then this morning we learned the US economy added 295,000 jobs last month versus a consensus estimate of 235,000. Also, darling Apple was added to the Dow Jones. All of this great news was met with one of the ugliest sell-offs of the…

Chart o’ the Day: 6 Years Since 666

Chris Kimble commemorates today being the sixth anniversary since the S&P 500 traded down to 666 and bottomed on a dime. He notes that average annual returns for the S&P 500 index since then are running about 21% – all you had to do to earn them was to ignore the 57% murdering of the…

Dow Jones Industrial Apple

Big news on The Street today as Dow Jones Indices may be top-ticking yet another tech darling after a dramatic run-up to a record market cap. The Dow Jones Industrial Average has become famous over the years for adding names at or near generational peaks – and technology names in particular – after they’ve already been…

The Eight Things Charlie Munger Expects from Warren Buffett

In the latest Berkshire Hathaway letter to shareholders, Vice Chairman Charlie Munger commemorates the 50th anniversary of “present management” by talking at length about the “Berkshire System” implemented by Warren Buffett almost from the beginning.  Charlie has eight things he expects of the chairman of the company (Warren Buffett for now)… *** Berkshire’s Chairman would…

QOTD: Nothing Like a Surprise to Ruin a Relationship

My pal James Osborne, a Colorado-based RIA at Bason Asset Management, talks about client expectations on his blog this week. Nothing can ruin a relationship between an advisor and their client like a surprise – especially an investment-related surprise… And then there is a second conversation about expectations, one that is likely more important than…

What Smart Beta has in common with traditional indexing

Breaking the link between a portfolio’s allocation to stocks and the market capitalization of those stocks is the basic idea behind Smart Beta investing (Morningstar calls it ‘Strategic Beta’ now, which is not catching on). This is an idea that been around for decades, at least since the early 80’s when Fama and French unveiled their…

Putting an End to Broker Cockroaching

In my 2012 book, Backstage Wall Street, I spend about a quarter of my word count talking about the stuff I’d seen at some of the brokerage firms I’d worked at. I even reprinted the scripts they were teaching us, in the hopes that the reader would be better prepared for the next incoming cold call…

You’re All Looking at the Wrong Chart

Ace technician Stephen Suttmeier writes at Bank of America Merrill Lynch: The often overlooked NYSE set up big breakout One US equity market index that investors often overlook is the NYSE Comp. The headlines have focused on NASDAQ 5000, but the NYSE is a broad-based index with 1995 members (NYA Index) that is set up…