We build investing models. They provide us with simple Buy, Sell, Cash signals. We let the signals guide our investing, buying and selling as the signals dictate. We take this approach because we know that investing is more about managing our emotions than anything else. (more…)
We found Josh Brown’s thoughts on the current market interesting. It could be extrapolated to be a comment on investing much of the time.
The US stock market is now selling for close to a record high valuation. Volatility for the S&P 500 is currently registering record low readings. Brilliant hedge fund managers like David Einhorn are ringing the alarm bells over the worship of growth stocks without earnings. Warren Buffett’s Berkshire Hathaway is sitting on a $90 billion cash hoard, struggling to find reasonably valued assets to invest it in. Bonds are no bargain given today’s yields vs inflation, and that’s assuming rates are just steady – if they rise more quickly than expected, there will be some pain. (more…)