Insights

What about Gold?

It’s a great hedge, but there are risks You’ve probably noticed that gold is hitting new highs.  If you own it, you might be wondering if you should sell it.  If you don’t own it, you might be wondering if you should buy.   The value of gold as a hedge The gold...
Posted in Company Blog

Expected Return, Risk, and Diversification

You’ve probably been told (over and over) that your portfolio should be diversified. You may have some sense of why that’s a good idea. Here’s a (slightly) mathematical analysis of the related concepts return, risk and diversification: Expected return Let’s consider...
Posted in Company Blog

Why Good Historical Data is Important for Financial Research

High quality data is important.  Here’s why: What bad data looks like Check out the image on the right. Zoom in and look. DD (Dupont) drops 83% on Jan 8, 1988, then climbs 580% exactly one year later. Coincidence? No.  This represents an error in google’s historical...
Posted in Company Blog

Trailing Stop Oil: A Low Risk Bet on Iran / Israel

The price of oil has been rising lately. This is at least partly due to the prospect of Israel attacking Iran (something I’ve written about separately). Here is a simple low risk trade that could pay off if Israel attacks Iran. This strategy relies on a “trailing stop...
Posted in Company Blog

Iran, Israel and Your Portfolio

How to invest if Israel or the US strikes Iran In my last article I wrote about the possibility of Israel or the US striking Iran.  In this article I will discuss the implications for your portfolio. The initial market effects of an Israeli / Iranian war will be that...
Posted in Company Blog