Most investors do not have the time horizon they claim to have. Instead, they have the time horizon they reveal through their behavior. In fact, I believe most people have three investment time horizons: Stated Time Horizon-What they tell their advisor (or themselves)...
Bloomberg just published an article challenging the traditional notion that institutional investors represent “smart money” whereas retail investors are hapless. The article is based on data collected by State Street showing the equity weighting of a large universe of institutional investors. First, note...
A number of my recent posts have focused on the high level of risk taking in the capital markets. To name a few, I cited narrow high yield bond spreads, flows into crypto, trading of zero-day options, flows into leveraged ETFs, and so...
Last week, I posted a blog identifying a number of signs that investors are very much in a “risk-on” if not speculative mood. Do you remember the meme stock mania in 2020 and 2021 when the price of Game Stop stock went from...
Attempting to forecast or time the stock market is a losers game given that many studies demonstrate the significant negative impact of missing out on even a few good days in the stock market. So, what follows is strictly for informational purposes and...
This chart shows the amount of assets currently held in money market funds, and you will note that we are at an all-time record of about $7.4 trillion. I can think of several explanations for this amazing cash hoard. First, the economic uncertainty...
