Guest Post: The Last Remaining Cheap Asset

“My delusions about my mad bbq’ng skills are similar to everyone’s belief they are contrarians. Whether it is the NYSE specialist, the Chicago pit local, the Bay Street equity trader, the London credit specialist, or even the guy at home trading in his underwear, we are all consumed by these romantic narratives where we bravely battle the naive masses to nail the next great trade. But the reality is that we can’t all be contrarians. If we were, then it wouldn’t be contrarian”…

Read More

One Manager Warns: “Today’s Weapon Of Mass Destruction Is A 3-Letter Word: ETF”

“The weapons of mass destruction during the Great Financial Crisis were three-letter words: CDS (credit default swap), CDO (collateralized debt obligation), etc. The current weapon of mass destruction is also a three-letter word: ETF (exchange-traded fund). When the world decides that there is no need for fundamental research and investors can just blindly purchase index funds and ETFs without any regard to valuation, we say the time to be fearful is now.”

Read More

“Don’t Believe The Hype”: 2 Charts Suggest Central Banks Are Not All Powerful

“It’s always a good idea to challenge preconceived notions by delving into the data. Sometimes we find our convictions are strengthened, which gives us the confidence to look through market noise. Occasionally, however, we find an answer other than the one we’re looking for.”

Read More