Silver as an investment

Category Archives: Dumb Money

A Gift From The Oldies

By Chris at www.CapitalistExploits.at I bumped into a friendly bloke at my local gym last week. Jim is his name. Jim tells me he just started because, and I quote, “my doctor says I’m going to die unless I do something”. Now, I assure you it doesn’t take a doctor to figure this out. One glance in […]

Human Traders Are Trouncing The Machines

The contemporary low volatility trading environment has been kind to actively managed equity funds – particularly if they piled into large-cap momentum stocks like Facebook and Amazon, which have been responsible for the bulk of this year’s rally. But while active managers have enjoyed three quarters of strong returns, quant funds – purportedly the future […]

“We Need More Suckers At The Table” – Quant Funds Stumble As Dumb-Money Disappears

The omniptence of artificial intelligence is unquestioned. The 'future' is automation, robotization, and algorithmic domination is the mantra of the new normal prognosticators – and anyone who challenges this world view is a luddite or 'denier'. There's just one problem – those quantitative, AI-based, computerized algos, that are supposed to be making people obsolete in […]

Dumb – And Dumber – Money Keeps Pouring In

Authored by John Rubino via DollarCollapse.com, Someday, stock, bond and real estate valuations will matter again. And the mechanism by which this return to sanity is achieved will probably be the torrent of money now flowing in from people who, for various reasons, don’t care about (or understand) the prices they’re paying. Millennials, for instance, […]

Weekend Reading: Markets May Be Getting Expensive

Authored by Lance Roberts via Real Investment Advice, Let me suggest a warning. Two week’s ago, I discussed the failure of Congress to get the Affordable Care Act (ACA) repealed, much less replaced. The problem, of course, is the failure to repeal the ACA leaves in question the ability to pass other agenda based items such […]

Will Mid-March Madness Maul the Stock Market in 2017?

Many of the 2017 economic headwinds I’ve described will hit during the Ides of March, just as the Trump stock-market Rally shows signs of topping out. This might not be the Great Epocalypse — not all at once anyway — but a large and likely correction is looming. I think the bear is about to be let out of his cage.  Chaos emerged in emerging-market stocks last week, […]

Will Record Short VIX Position Backfire On Speculators?

Via Dana Lyons' Tumblr, Speculators (a.k.a., “dumb money”?) are holding their largest net-short position in the history of the VIX futures contract. Every week, the CFTC releases their Commitment Of Traders (COT) report on the collective positioning among major futures players. Like most market data, the majority of the time, we do not find the […]

Seven Charts To Watch In 2017

As we begin the New Year, Brad Lamensdorf (CEO of Lamensdorf Market Timing Report) notes that historic indicators are showing that market expectations are extremely optimistic. Valuation and sentiment indicators, for instance, are rivaling record highs. From a contrarian perspective, these record-high indicators are warning signals to watch out. We take these warning signs very […]

Indexing Lunacy

By Chris at www.CapitalistExploits.at Market dislocations occur when financial markets, operating under stressful conditions, experience large widespread asset mispricing. Welcome to this week’s edition of “World Out Of Whack” where every Wednesday we take time out of our day to laugh, poke fun at and present to you absurdity in global financial markets in all its glorious insanity. While we […]

Pensions, Oy Vey

By Chris at www.CapitalistExploits.at Years ago it seemed that when you hit 65 you’d retire, receive a gold watch, and proceed to spend your pension money on a rocking chair and pot plants. Ten years later you’d be in a box and, since pot plants are cheap, the cost of keeping you alive wasn’t prohibitive. Not anymore. Today things are […]