Weekly Update

June 10, 2016 Update


timingcube_cartoon06172016

Money, time, and happiness

A couple of recent articles struck our fancy by talking about the link between money, life “efficiency”, and how all that relates to our happiness. At the bottom, we have a link to an article from The Economist magazine talking about the impact Amazon is having on Wal-Mart. One sentence from that article resonated as being really about the life and happiness of their customers:

“What Walmart did for Americans’ wallets, Amazon is doing for their time.”

(more…)

Weekly Update

June 3, 2016 Update


timingcube_cartoon06102016

Incentives and money

With stock markets grinding higher toward all-time highs (with the S&P 500 already there when including dividends) and little new information to ponder, we offer a reprint of a recent post by blogger Ben Carlson on money, incentives, millennial behavior, and what makes for “success”. (more…)

Weekly Update

May 27, 2016 Update


timingcube_cartoon06032016

Markets change their tune?

For much of this year and, frankly, the past couple of years, markets have wrung their hands worrying about the impact of the removal of Federal Reserve stimulus in the form of ultra-low interest rates. What would happen when the Fed began raising interest rates? Would chaos ensue? (more…)

Weekly Update

May 20, 2016 Update


timingcube_cartoon06032016

Yield inversion

This week?s Federal Reserve meeting minutes pushed investors toward thinking once again that interest rate hikes are coming sooner rather than later. The Fed minutes showed a group almost itching to push rates higher as long as economic data holds up. That shift in tone sent market interest rates upward somewhat and brought out all kinds of analysis of what might be coming in terms of yields/rates. The real fear of investors is that the yield curve will “invert” with short-term rates moving higher than longer-term rates. (more…)

Weekly Update

May 13, 2016 Update


timingcube_cartoon05202016

The emotional side of investing

As most investment newsletters we do spend a lot of time on the markets and what affects them, on technical indicators and investment vehicles. Another topic we visit fairly frequently in this column is the emotional side of investing which we judge to be just as critical for success. A long-term wealth building program must by definition be emotionally sustainable. (more…)

Weekly Update

May 6, 2016 Update


timingcube_cartoon05132016

Too many choices can lead to unexpected outcomes

Bill James is a sort of living legend among baseball writers. Mr. James is the creator of “sabermetrics” which fuses statistics and baseball as seen in the movie (and read in the book) Moneyball. This model-driven approach to building a baseball team is not so different from our model-driven approach to investing. We both seek solutions that remove subjectivity and bias. (more…)

Weekly Update

April 29, 2016 Update


timingcube_cartoon05062016

Slow and steady with our “balanced” portfolio

Most of you are likely followers of our Turbo Model signals. It’s an active trading model for aggressive investors. You may not be aware that we also have many other models that serve investors who have less aggressive objectives. An example of that is what we consider to be the best “balanced” portfolio available to investors. That portfolio can be found indirectly at our FPResearch website. There, we display two portfolios – All-Equity and Equity-Income. The All-Equity portfolio largely tracks the returns of the S&P 500 while sidestepping the awful plunges that are a natural part of stock market investing. Substantially all of the stock market upside without the horrible downside. Sounds pretty nice we think. (more…)

Weekly Update

April 22, 2016 Update


timingcube_cartoon04292016

Inflation trade ramps up

Over the past month markets have shifted once more in dramatic fashion with commodities surging higher across the board. This has brought sectors like mining and oil drilling back from the dead which, in turn, has led to a sharp recovery in high-yield bonds. (more…)

Weekly Update

April 15, 2016 Update


timingcube_cartoon04222016

When index investing gets askewed

What can happen as money pours into index funds during a period of cheap and easy money? One example is explored in the article below by Bloomberg columnist Lisa Abramowicz. (more…)

Weekly Update

April 8, 2016 Update


timingcube_cartoon04152016

King dollar

With the first quarter of 2016 now in the books, we reflect that movements in currency which then ripple through into commodities remain the major driver of market action. The vacillating tone of the U.S. Federal Reserve created some volatility. The Fed told us that rates would be heading higher over 2016 only to reverse course as the global economy continues to show an inability to get any real traction. That has caused the Bank of Japan and European Central Bank to be even more aggressive in their drive to lower interest rates and support economies and markets. The push downward on interest rates through the floor by these two major market players left investors wondering what the impact of negative interest rates would be. (more…)