Investing 101

By proceeding, I acknowledge that I have read and understood the Disclaimer, Performance Reporting Disclosure and Copyright Statements

.

If you would like to see the video, Click here to watch. This morning, another CNBC commentator blamed part of the market’s problems on some Quant funds that have gone south which has led to people liquidating their shares. I’d argue it is quite the opposite - the market is going south which is resulting in Quant fund underperformance. Due to the irrational nature of the market, Quant funds should be expected to perform poorly. This was a theme that I started to watch in August of last year. If you would like to take a look at my post from August ’06, simply click here. My take on Quant Fund performance (or lack there of it) is merely another indicator that we are in the initial stages of a bear market. Two things take place at market tops that handicap Quant strategies.

1. Market Breadth deteriorates meaning the majority of stocks decline while a few large names hold up the cap-weighted indexes.
2. Investors are irrational during inflection points.

By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements . Dear Clients, In my October Update, I listed three fundamental reasons why I’m emphasizing SLV over GLD. Recently, I came across a fourth reason in an article on savehaven.com called Leveraging Gold with Silver by Roland Watson. In his article Leveraging Gold with Silver , Mr.

By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements .

By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements . I

Is the Dow Jones Index (DJI) really at an all-time high? Some might consider me crazy for posing such a question. Of course the DJI is at an all-time high over 12,3000! Back in 2001, the Dow previously peaked at 11,337 nearly 5% below today’s levels.

By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements .

Market inflection points (tops and bottoms) are characterized by extreme irrationality on the part of investors. At The MAC, we track several indicators that measure how “irrational” the market is being. In June, these indicators turned decidedly bearish. However, they have recovered over the last couple of months which would mean that the market is acting more “rational” and signal that the likelihood of an imminent bear market is seemingly diminishing. However, before I turned bullish, or at least neutral, on the market I discovered a strange occurrence that has made me increasingly skeptical of this bull market’s ability to rage on.

By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements .

Over the last several days (4/30/05 – 5/3/05), the Dallas Morning News wrote a four part series called “Trade Secrets” which sought to expose some of the gross inadequacies of the brokerage business. I thought the article made some very salient points but failed to emphasize the real problem with securities brokers. In my view, it all comes down to conflicts of interest. The more conflicts that exist the greater the chance of unethical behavior.