Asset markets move in cycles, flipping between periods of growth and decline (or consolidation). You can see these cycles in pretty much every asset class and on multiple levels due to the fractal nature of markets. This means there is a short-term cycle within an intermediate-term cycle within a long-term cycle, and so on. You…
An Intro to Technical Analysis: Seeing Some Structural Weakness
Technical Analysis is the study of charts, chart patterns and indicators. Purely fundamental investors who study balance sheets and cash flow statements think it’s a complete waste of time whereas chart technicians think it’s all that matters. I say, why not be well versed in both? I’ve found it to be extremely valuable in helping…
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…
What’s Been Catching My Eye Lately
Rollover of After-Tax 401(k) Dollars to a Roth IRA Last week the IRS finally produced a ruling on whether or not you’re able to rollover after-tax dollars in a 401(k) to a Roth IRA tax-free, which is different from actually having a separate Roth 401(k) account available. The IRS has ruled that after-tax and pre-tax…
Apple & Gold
The large majority of my clients own stock in Apple and gold so I obviously keep a close eye on both. For years these were two of the best performing assets you could own but both fell out of favor last fall. The interesting thing that I’ve noticed is how closely they’ve tracked each other…