Category: Market Analysis

  • Sector Rotation Theory

    One method of asset allocation is to engage in sector rotation. This is a strategy that takes advantage of how different industry groups respond to business cycles. It is recommended to avoid young, small-cap firms and focus on large blue-chip firms. The sectors are broken down into 8 core groups: Basic Materials, Consumer Cyclical, Consumer […]

  • A Conglomeration of Ideas

    The most important thing when choosing a stock is the ability to think for yourself. In the article, “Stock Selection: How to Be a Star?” it was found that the more that managers responded to recommendations by analysts, the worse that the fund performed. Successful managers have an uncanny ability to ignore the constant stream […]

  • Amazon: The King of the Jungle

    In June, the WSJ published a piece analyzing Amazon’s decision to takeover Whole Foods. When Bezos made his initial announcement, he didn’t give any reason or backing to his decision. He just announced that he was going to do it. Amazon doesn’t give out any dividends. They are a company completely focused on internal and […]

  • The Healthcare Cartel

    I found this chart courtesy of Charles Hugh Smith, a brilliant essayist who has some incredible intuition on the market. I’m borrowing some of his ideas in this post, simply because he wrote so concisely on the fact that our “free market healthcare” is driving our country to collapse. In school, we are taught that […]

  • Venezuela: The Country that Once Was

    Recently, the country of Venezuela has made headlines. The country is on the brink of a civil war, facing massive inflation, a corrupt government, and a population that is comprised of 80% living below the poverty line. The country is going through a financial crisis, with inflation jumping 741% from February 2016 to February 2017, […]

  • Netflix: The Company That Can’t Be Beat

    Netflix (NFLX) delivered its earnings tonight, kicking off the so-called “earnings season”. The company has always been on my watchlist, just because I like the service they offer, but I think that the overall stock is volatile. Netflix became a public company in 2010, sitting at the ripe stock price of $175.70, a 200% increase […]

  • What is Going On?

    “The DOW rose 62 points, ris(ing) about 8% through the first six months of the year” “The SP 500 also gained about 8% this year” “Nasdaq has easily outperformed the DOW and SP 500 this year, surging more than 14% and logging its largest first-half gains since 2009.” Okay, so not too concerning. The market […]

  • Research: My First Paper

    So I will be too busy with finals to write for the next week or so, so I decided to leave something on here for people to think on during my absence. I was fortunate enough to do research with one of my professors, who is quite literally a genius. We wanted to see if historical […]

  • SNAP – Is it Going to Crackle?

    SNAP is the next big thing. The IPO of the Snapchat company, it saw a huge increase in price due on its opening day. Opening at $19.54, the stock shot up to $24 in the first day, climbing to $27 the next day, and then settling back down to $22, where it has hovered for […]

  • Lessons from a Red-Nosed Reindeer: The Power of Metals

    “Silver and gold, silver and gold Ev’ryone wishes for silver and gold How do you measure its worth? Just by the pleasure it gives here on earth Silver and gold, silver and gold Mean so much more when I see Silver and gold decorations On ev’ry Christmas tree” – Rudolph the Red-Nosed Reindeer The classic […]