A lot of people are getting excited about the trend of legalizing marijuana and looking at the area as one of the next big investment themes. You commonly hear talk about the dispensaries and growers as an easy way to play the theme. However, I think the recreational use of marijuana will be small pennies…
Potential Sea Change
Last week’s FOMC meeting may have signaled a coming change in the investment markets. During the press conference, Janet Yellen began to lay out how the Fed will start to reduce its balance sheet (i.e. all of the bonds that they have purchased through QE). She said it could begin in the very near future. …
A Simple Way to Measure Market Overreactions and Turn them into Opportunities
In this post I’m going to show another way you can look at a stock chart to see where a particular stock is trading in relation to its longer term trend by using linear regression channels. These measure a stock’s trend over a certain period of time, as determined by its best fit linear regression…
Two Ways to Invest in the Changing Shopping Trends
It’s pretty clear that more and more shopping is being done online these days to the point that retailers who were behind the curve or still brick-and-mortar focused are under a lot of pressure, leading to store closings and even a wave of bankruptcies. I recently made two new investments that I believe are positively…
More on the Index vs. Active Management Debate and How it can Create Opportunities
In this post I’m going to offer some additional points on the whole active management vs index debate, as well as discuss some of the very large distortions that ETFs in particular are creating. I too often hear people arguing for one side over the other but this misses the point. It’s not a question of…
My Current Outlook for US Stocks
Sometimes I’ll receive a question along the lines of “Hey, what do you think the stock market is going to do this year?” I’m assuming they’re looking for a very specific answer like “the stock market is going to rise 10% this year…” but markets and investing are not that clear cut. Even when you…
New Investment – Partnering with the Warren Buffett of Healthcare
Last week I purchased stock in a new long-term investment within my client’s Growth allocation that I’m pretty excited about. The company is called OPKO Health (OPK) and is run by Dr Phillip Frost who is often referred to as the Warren Buffett of healthcare. Studying a company’s management team and Board of Directors is…
Recent Portfolio Updates
European Stocks European stocks and US stocks typically move with a fairly high correlation but they’ve diverged quite a bit over the past 3 years as both the euro currency and British pound have depreciated significantly against the US dollar. I’m thinking we’ll likely see this gap close over the next year so I started…