Italy is one of the most beautiful countries in the world, and it certainly has one of the best foods. However, they have struggled to grow their economy and, accordingly, their stock market. The Italian stock market is currently trading in the same spot it was in 1998. This is more than 25 years of…
In previous articles, we highlighted that simple adaptations to a strategy can have a huge impact on the performance of the strategy, its expected rate of return, and risk profile. We’ve seen that entering and exiting the trade on the same day’s close rather than the next day’s open can boost the strategy’s performance while…
The Net-Net Value Investing Strategy, developed by Benjamin Graham and Warren Buffett, evaluates a company’s stock by considering its net current assets per share after adjusting for doubtful accounts and inventory values. Let’s find out how the net-net strategy works. The Net-Net Value Investing Strategy, created by Benjamin Graham, is a value-based method for evaluating…
To succeed in trading depends on having a profitable trading strategy and implementing it well. Of course, this seems like a no-brainer, but what exactly does a profitable trading strategy mean? A profitable trading strategy is one that consistently makes money over a reasonable period of time. It is not just enough for a strategy…
The advent of Artificial Intelligence is here, and is forecast to combine with and revolutionize many industries in the years to come. One such combined industry is ‘Robotics and AI’, and traders are increasingly seeking ways to position themselves to make use of this trend as adoption rates of robotics and AI increase. What can…
Today we will introduce you to a well-known stock market anomaly – the small-cap effect strategy. Small-cap stocks are one of the types/factors you can invest in and hold in your securities portfolio. Small-cap stocks differ from large- and mid-cap stocks in several ways and have advantages and disadvantages. If you want to invest in…
Today we will introduce you to two main approaches to investing – passive vs. active investing strategy. An investor with a passive strategy will devote less time to the market and can increase capital at a pace in line with the markets less a small management fee. Opposite, an active investing strategy implies greater involvement…
Commodities, being closely tied to weather patterns and economic activity, exhibit high cyclical characteristics. Similarly, stocks also display cyclical tendencies. Given this, is there an opportunity to capitalize on their optimal performance? The commodities to equity ratio tries to do exactly that by telling us which asset class is performing better. But can we develop…
The Gone Fishin’ Portfolio by Alexander Green is a “lazy” index diversified portfolio that allocates assets across 4 asset classes: stocks, bonds, REITs and precious metals. These 4 asset classes are divided into 10 categories: U.S. Stocks, U.S. Small Cap Stocks, European Stocks, Pacific Stocks, Emerging Markets Stocks, Short-Term Investment-Grade Bonds, High-Yield Corporate Bonds, TIPS…
For those who follow social media, you might be aware of the following ratio that is frequently discussed: Nasdaq100 & Treasury Bond Bond relationship. What is it, and is it profitable? In this article, we explain the ratio and we backtest it. The backtested result looks like this: QQQ/TLT This is the ticker code…
