I know of a professional trader who foresaw the Great Recession, went to cash in the summer of 2008 before things got crazy and came up with a wonderful plan to put his money back to work at the lows. He planned on putting his cash into a simple S&P 500 index fund in 25%…
Animal Spirits: Bailing Out Main Street
Michael and Ben on everything virus and crisis related to the markets and money.
What’s Causing All the Panic Buying & Selling of Stocks?
When I wrote this piece for Fortune a couple of weeks ago it seemed apt to compare the market volatility to the ups and downs of the European debt crisis of 2011. At the outset of this downturn, we were seeing 3% and 4% moves in both directions. Then last week the market said to…
Returns From the Bottom of Bear Markets
We are now in the 13th worse bear market since the late-1920s with losses just shy of 30%. It would take another 15% drop from here to get to a 40% loss. It would take another 30% drop from here to get to a 50% loss. I don’t know if this is going to happen and neither…
The Power of the Human Spirit
A number of years before the onset of World War II, Winston Churchill warned the House of Commons about the dangers of a potential German invasion, describing London as, “the greatest target in the world, a kind of tremendous, fat, valuable cow, tied up to attract the beast of prey.” A few months later he…
Animal Spirits: Is This Worse Than 2008?
This week’s Animal Spirits with Michael & Ben is supported by YCharts: Mention Animal Spirits and receive 20% off your subscription price when you initially sign up for the service. We discuss: When chasing yield goes bad Worries about the credit markets Why this period gives me more anxiety than 2008 Is work from home here to stay?…
The Historic Sell-Off & a Game of Expectations
Why relatives matter more than absolutes in the stock market.
Why You Can’t Always Swing at the Fat Pitch During a Crisis
CNBC reported last night that the biggest banks in the United States would be stopping their buybacks to shore up their balance sheets because of the crisis: The group — which includes JPMorgan Chase, Bank of America, Citigroup, Morgan Stanley, Wells Fargo, Goldman Sachs and two other banks — said in a statement that the pandemic was an “unprecedented challenge.” “The COVID-19…
Talk Your Book: Positive & Negative Compounding – Trading Direxion Leveraged ETFs
Today’s Animal Spirits: Talk Your Book is presented by Direxion. We spoke with Dave Mazza, head of product at Direxion. We discuss: How leveraged ETFs work Myth-busting many of the thoughts about leveraged ETFs Who are these products for and who should avoid them? How are these products structured and how are they created? Who…
Levels of Losing in the Stock Market
Bill Simmons wrote a piece for ESPN back in the day called The 13 Levels of Losing when it comes to life as a die-hard sports fanatic. I thought about this column recently as it pertains to the markets. The worst was ‘That Game’ which refers to something like the 1986 World Series where the…
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