Category: Volatile Tales

A Scary Groundhog Tale

A Scary Groundhog Tale   It seems appropriate to write this tale on October 31, 2019 in celebration of yet another Halloween. But our tale begins on Groundhog Day, February 2, 2018.  It was on that fateful Friday that VIX futures started their steep rise which culminated after the stock market closed on Monday February 5th […]

NAAIM INVESTOR SHARK TANK SAN DIEGO 2017

NAAIM INVESTOR SHARK TANK SAN DIEGO 2017

A couple months ago, I was selected as a finalist to present our Inverse Volatility Approach to the Investor Shark Tank at the National Association of Active Investment Managers National Conference out in San Diego. While I did not win, the experience was one I will always remember because it gave me the opportunity to present in front of a large […]

FINANCIAL CALCULATORS – MORE HARM THAN GOOD? A DRAINING TALE

FINANCIAL CALCULATORS – MORE HARM THAN GOOD? A DRAINING TALE

I was recently at lunch with one of my long-time clients and her recent college graduate grandson.  We of course were talking about money and no money conversation is complete without a discussion about rates of return.  The grandson brought up the topic of financial calculators and that he had been playing around with them.  […]

WHY DIVERSIFICATION IS TEMPORARILY BROKEN: A WHAT TO DO TODAY TALE

This tale is a major departure from my other tales.  The last time I actually made a market call was in October of 2008.  It was a bullish market call since it was clear to me that stocks were cheap, quality Blue Chip stocks were paying high and sustainable dividends, and the future of the […]

MONEY, MATH AND MARKETS: HOW MONEY REALLY GROWS

When it comes to money and math, there is a big difference between how people think money grows over time and how money actually grows over time. What is this difference called? Compound interest. Watch our short video below to learn about: What compound interest is How money grows in the stock market Actual return vs. […]

A TRANSFORMATIVE TALE: “LIKE US, THERE’S MORE THAN MEETS THE EYE”

A TRANSFORMATIVE TALE: “LIKE US, THERE’S MORE THAN MEETS THE EYE”

In A Practical Tale, we learned the importance of understanding the expected behavior of asset classes, which of course impacts the expected behavior of your portfolio.  We can be fairly certain that when it comes to asset class risk, which we define as how much money you can lose if you invested in an asset class […]

AN ALTO MAR TALE: “THE MAXIMUM DRAW DOWN”

AN ALTO MAR TALE: “THE MAXIMUM DRAW DOWN”

When I was in elementary school we would spend endless, countless, boring hours focusing on the three R’s: reading, writing and arithmetic.  While most can commiserate with my experience towards the three R’s, nowadays, I find myself focusing on The Three R’s of Investing: the Reward, the Risk and the Ratio.  Over the past 25 years, […]

A VOLATILE TALE: “DOES VOLATILITY AFFECT MY INVESTMENTS?”

Most people are psyched out by the word volatility. They shouldn’t be. A practical synonym for volatility is predictability. The less volatile something is when it comes to investing the more predictable it is. The more volatile it is the less predictable. We know that a safe investment such as a 1 year US government […]

AN AVERAGE TALE: “THE GOOD, THE BAD AND THE AVERAGE”

AN AVERAGE TALE: “THE GOOD, THE BAD AND THE AVERAGE”

Understanding averages is an important part of understanding investing. Whenever you hear the word average you must train your mind to immediately ask the question, what happens when the average doesn’t come true? If you don’t you could be headed for trouble. This tale deals with what happens when a person only thinks in terms […]

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