Alice and the White Queen

By | 2017-07-17T12:21:17+00:00 June 9th, 2017|Global Market Update|

Is the market trying to believe impossible things? Illustration: John Teniel. Source: Wikipedia A classic “children’s” book – that isn’t really for children – is Lewis Carrol’s Through the Looking Glass, his sequel to Alice in Wonderland. In the book, Alice and the White Queen have this exchange: “There’s no use trying,” Alice said. “One can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was younger, I always did it for half an hour a day. Why, [...]

Fashions, Fowls, and Trend-Following

By | 2017-07-17T12:21:53+00:00 July 26th, 2016|Global Market Update|

Where do investment fashions come from? Photo: G Pinant. Source: Morguefile I used to work near a large park, where I would take my lunch and eat outside. There wasn’t much litter in that park—any leftover food would quickly get devoured by the many pigeons that hung out there. They were always poking about, searching for random scraps that might have been left behind. If anyone began to feed them, a group would quickly assemble. First a few, then dozens of birds would fly [...]

Duck Walking

By | 2017-07-17T12:23:13+00:00 November 14th, 2014|Global Market Update|

Sometimes, there’s no question what something is. Source: Wikipedia If it looks like a duck, walks like a duck, and quacks like a duck, then it’s probably a duck. There’s no ambiguity. Yesterday several news outlets reported that a popular foreign exchange trade site had vanished, along with over $1 billion in account balances. […]

Go With the Flow?

By | 2017-07-17T12:23:17+00:00 October 10th, 2014|Global Market Update|

Does momentum investing work? Source: Callen Associates Investors have a tendency to chase returns. That’s why mutual fund companies hype their most recent performance in big, bold letters, just above the fine-print disclaimer: “Past performance does not guarantee future results.” There’s a reason they advertise this way: everyone loves a winner. […]