Trade in Groups

Last time, we discussed how investors willing to analyze opportunities up and down a company’s capital structure open up numerous possibilities to generate absolute returns - in particular, through looking for undervalued embedded options in convertible securities. Reading the last article will be helpful to understanding this one, but an abridged summary is that convertible […]

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As was discussed last time, all too often investors handicap themselves by defaulting to the long-only equity investment strategy. While equity ownership is the best path to wealth in peaceful and stable capitalist societies, having a portfolio solely comprised of long stock positions is in reality minimal diversification; in cases where the broad markets suffer […]

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Looking through Morningstar mutual fund data the other day, I was struck by the fact that every single US stock fund in their 10,093 fund universe had posted a negative return year-to-date. While eight funds had posted “only” single-digit percent losses, not one fund had a positive return – think about that for a moment.
 
Whether […]

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We noted previously that during the worst of days in October, Campbell Soup (CPB) was the only stock in the S&P 500 to rise. Add another distinction to the soup maker – traders have more confidence in its credit than in the US government. Via Bloomberg, it’s noted that the price of credit default swaps […]

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There has been much discussion about returns from the market over a short to intermediate time frame, using statistical methods and historical perspective. Now we will take a step back and assess this particular market’s technicals.

The S&P 500 has been working its way off the November lows, but the volume has been tepid and declining. […]

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With 2008 coming to an end, it’s time to start reflecting on another year trading - and it has been a rocky one with for US and global markets.  Going into the start of December, the S&P 500 had a year-to-date return of  -39.5%, having fallen from the January opening price of 1,467.97 to just 888.61 to open December. Looking […]

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