One of my favorite investment writers, and now also podcaster, is Meb Faber. He always has great insights backed up by lots of data. However, one of the things that I disagree with him on is the usefulness of CAPE (Cyclically Adjusted Price Earnings) as a valuation metric. His latest post on the subject (link Read more about Incredible Investors Should Leave Their CAPE at Home[…]
Like so many other people in America I get excited about football season. Part of it is just my eternally optimistic hope that the Bears will be competitive and make a run deep into the playoffs. Second to that though is the chance for fantasy football domination. I have to admit that my performance the Read more about What Fantasy Football Can Teach You About Investing[…]
The old adage Sell in May and Go Away suffers from one fatal flaw and several minor ones. If you are anywhere near the investment world I am sure you have heard it. “Sell in May and Go Away” History shows that markets do not perform as well in the summer months as they do in Read more about Sell in May and Go Away? You Might as Well Pick Red or Black[…]
“So Keith, should I buy stocks now or is the market going lower?” “What should I invest in if the stock market is going to go down further? I heard it could drop another 20%.” “My brother-in-law said that gold is going to skyrocket this year. He sold out of stocks back in November. He said we Read more about Playing with Buckets – The Current Market in Context[…]
Being in the money management profession, here is a conversation that I have on a not-infrequent basis.
Friend – “Keith, what is the best investment I can make right now?”
Me – “Books”
Friend – “What, like Amazon.com or Barnes & Noble stock or something?
Me – “No, like the books you read.”
Friend (now with confused look on face) – “Books on investing?”
Me – “If that’s what your interested in, sure.” […]
I am not here to pick any fights this week. Nor to tell my readers how all the more famous investors and economists of the world are getting it wrong (they must be doing something right since they are famous, and I am not quite so much). Instead I want to focus on some interesting statistics about markets and economies that can help frame a perspective about markets. The size of different markets, along with the size of different market participants, is something that is little talked about in the main stream investment mediums. This is what I am calling the Mass of Markets, and in some future post may be so brave as to try and detail these relationships; but first, a primer. […]