If one studies the history of financial markets, a consistent theme emerges. Short-term fads tend to dictate short-term performance, but long-term performance is determined by value and fundamentals. There are periods where prices flat out do not make sense, either for the market as a whole or for individual stocks and sectors. The current investment...Read More

The Standard & Poors GSCI gauge of 24 raw materials has jumped 21% from this years low and is now officially in bull market territory.  The rally has mostly been motivated through the terrible drought affecting crops across the United States. This increase in prices could boost inflation and crimp profits for companies dependent upon...Read More

I think this is a rather naive Barron’s article on Managed Futures.  The Barclay’s CTA index has much higher turnover than the S&P 500 so funds that have the worst performance are usually eliminated from it which greatly distorts the return numbers.  This article also doesn’t even mention fees which I’d bet are quite high...Read More

It’s amazing to see the overreaction to daily swings in Apple’s (AAPL) stock price.  After the huge gains that the stock has seen, a 10% pullback is not anything to be too worried about.  I’m on record of not being overly bullish on AAPL moving forward as I worry about their gross margins, and I...Read More

This was a bet made a few years back that the S&P 500 index would outperform a fund of funds.  Buffett’s premise of course was that due to the excessive fees charged by the fund of funds, over time it is very likely the S&P 500 which is very low in cost would outperform.  It...Read More