A ‘Golden Ruler’ for Investing in the New Year
New Year’s resolutions abound, and many are probably adopting some version of the “Golden Rule” for their life, but what their investing? The Golden Rule sets the standard for our interactions with others, but did you know there is a similar standard for investing? I realize I’m asking a lot of questions. However, I’m about…
Best Stock Market Recovery Ever
Year Ends With Record High The stock market ended 2020 at a record high as the S&P 500 rose 64 basis points. Tesla was up 1.57% to a new record. This was the stock of the year. It now has a $669 billion market cap. Investors highly doubt it will have a great 2021. It…
Stocks Set For Multiple Contraction In 2021
Earnings & Stock Price Mismatch EPS growth and stock prices don’t always match if you’re looking at data by year. As you can see from the table below, in 3 out of the 7 years EPS fell, stocks were up. In 5 of 9 times the stock market fell, EPS growth was positive. We will…
It’s a New Year! Trade Like It
TheoTheta Portfolio----will run like a trading book--sale of naked premium is viable--NO margin constraints--options on futures and micros can be a substitute--portfolio will use tactical hedges--understanding of greek risk a MUST SPX Expected Move--last week-- 58.04 (expected move)--next week-- 89.79
Beyond the Looking Glass: Equity Peer Group Analysis
So you’ve found a stock and want to weigh its merits as an investment by comparing it to its peers. The tendency is to over-simplify the process by only considering companies that have similar products. The purpose of this article is to look beyond just the simple reflection of the stock in question and focus…
Can Tesla Catch Facebook?
Small Caps Rebound This is low volume trading at the end of the year which doesn’t mean much. Obviously, if you are taking profits and buying stocks, the prices are real, but we shouldn’t use this action to make conclusions about how January will go. As you can see from the chart below, the MSCI…
Energy Could Dominate 2021
Q4 GDP Growth Estimates The Chief Economist at RSM, Joseph Brusuelas, raised his Q4 GDP growth estimate from 2.7% to 4.8% on Wednesday because of November’s trade and inventory data. Remember, even though the quarter is over, only about 2/3rds of the data is out, so we have a lot of room to go until we…
Surprises from 2020 as Stocks Close the Year Near the Highs
2020 will go down as one of the most surprising and unexpected years in the market, given the depth of the early year plunge from the pandemic was met with even stronger buying from April to the end of the year. In tonight's video, Corey highlights a few key lessons from the year and then…
2020 Hindsight Brings Out the Foresight to Hedge into 2021
As we approach the turn from 2020 to 2021, option traders are looking to major market index ETFs to hedge. Many look at the new year as an opportunity to set goals for redefining themselves physically, spiritually, financially, etc. A rebirth! However, how many aspects of our current circumstance will be suddenly absolved in 2021?…
Almost A Correction In Small Cap Growth
Are We In A Correction? It sounds silly to ask if we are in a correction because the S&P 500 is 22 basis points off its record high with its decline on Tuesday. However, it's not asking if we are in a correction in large caps. It's asking if we are in a correction in…
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