Archive for December, 2014

Mutual funds: the gift that keeps on taking….

Posted on Dec 27, 2014 by .

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http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p22775897357&a=266398464 Today’s WSJ records the fact that 79% of mutual funds are underwater to their benchmarks.  This sorry story is exacerbated by the fact that their benchmarks are so low.  (Ever look at the Lipper Averages in detail?  Don’t if you’re prone to depression or easily driven to tears by the obfuscatory practices of Wall […]

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Blink and miss it….

Posted on Dec 20, 2014 by .

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        We have previously remarked on the progressively violent waves shaking the markets. http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=8&dy=0&id=p71634106866 Very clearly here we can see three waves of progressively expanding amplitude, each followed by a downwave commensurate with the power of the preceding upwave.  The latest wave/downwave is notable  for  its violence.  A 421 point day in […]

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Eye of the storm or…

Posted on Dec 17, 2014 by .

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http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p22775897357&a=266398464 Sailing before the wind, which we have been doing since Mar09, is easy.  When you hit a hurricane in the Bermuda triangle you have to hitch up your pants and reef the sails.  Today the market rewarded us with a 40 point day in the SPX.  That’s  big.  We could just be in the […]

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Perfect storm…

Posted on Dec 13, 2014 by .

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http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p22775897357&a=266398464 While the result is nothing rare, (an expected downwave to curb a 37+ day surge) the violence of its accomplishment was notable — sort of like a pefect storm at sea which sinks small boats at random.  ” ‘The safest road to hell is the gradual one…” wrote C.S. Lewis.  There is nothing more […]

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Sobering thoughts … and roller coasters…

Posted on Dec 09, 2014 by .

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http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p22775897357&a=266398464 It is a sobering, but not unusual, fact that Standard & Poors has caclulated that only 10% of funds are above water.  One wonders why investors pay incompetent managers for substandard performance.  We think it is investor fear.  They are  acutely aware that the purpose of the market is to transfer their capital to […]

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