We offer regular reviews of topics that are important to asset owners and managers who trade capital markets. Our opinions and insights are freely shared.

Two Charts To Watch

Another blow out week for U.S. mega-cap stocks. Of the Big 5 (Apple, Microsoft, Google, Amazon, and Facebook), all but Apple traded at all-time record highs this week (Apple remained a scant 1% below its June record high). Second-quarter earnings season for the FANG stocks is about to get started, which likely explains the disproportionate

Two Charts To Watch

Alamos Gold. Trade recommendation.

As the Trump’s trade tariffs went into effect Friday at midnight, one might have thought that financial markets would suffer on fears of a slowdown in trade and world economic growth. However that would be falling into the “logic trap” in a market that has repeatedly, over the past couple years, done exactly the opposite

Alamos Gold. Trade recommendation.

Hudbay Minerals. Buy opportunity

The past week’s trade brought more market volatility from the ongoing Trump trade war saga. The S&P 500 finished down -1.3% for the week, the second consecutive week of losses, although the Natural Resources benchmark index eked out a +0.48% gain for the month. Recent trade war fears have weighed more on overseas stocks, as

Hudbay Minerals. Buy opportunity

The Many Risks to Cannabis Industry Investors

The interest in cannabis today is as high as a kite. Seriously. It is time to think about investor risk because green will not always be the prevailing color. At times there will be a sea of red, and many, perhaps even the majority, of the current industry players will fail. Investor relations of all

The Many Risks to Cannabis Industry Investors

Review of the Silver Miners

This week we review the corporate fundamentals and technical market data of eight silver-focused mining companies. Of the 19 stocks we currently hold in our Natural Resources portfolio, only one is a primary silver miner. We’ll show readers why we picked the one we did. We selected this week’s topic because we believe that it

Review of the Silver Miners

Living In A Bubble

This week saw the Russell 2000, Nasdaq-100, and Russell 1000 Growth Indexes return to all-time record highs. The S&P 500 and Dow, weighed down by the Financials, are slightly lagging the higher beta, growth indexes. The reason for the strong move in the indexes off the early May lows is… Well, we can’t find a

Living In A Bubble

The Yen Trade

Many investors remember the Yen Carry Trade, popular back when interest rate differentials between Japan and an investor’s home country were sizable. Recall that the yen carry trade involves borrowing in yen at their rock-bottom interest rates, then exchanging the borrowed yen for a currency in a high interest rate country, such as the U.S.

The Yen Trade

Cannabis. Budding Opportunity or Bubble?

The American public is recognizing that the U.S. cannabis industry is developing rapidly. Many of us on the inside understand there will be no holding back because cannabis, like cell phones (the IBM Simon introduced digital mobile phones in 1990) and then the Internet (which became publicly available August 1991), is well on the way

Cannabis. Budding Opportunity or Bubble?

Value Investing Is Dead. Long Live Value Investing.

During the Financial Crisis, an innovative website created the hedge fund “implode-o-meter” to track the number of funds that went “tits up” in the extreme market conditions. The collapse of the housing sector and credit crunch taught hedge fund managers of the dangerous double-edged sword that comes with excessive leverage. Some 117 hedge funds went

Value Investing Is Dead. Long Live Value Investing.

Data-Driven Stock Selection

There is no such thing as an undisciplined stock picker, at least not one who is a successful portfolio manager. Finding something good to buy in capital markets requires looking for it and that requires orientation. Some call it style; we call it discipline. To find a good value stock or growth stock or income

Data-Driven Stock Selection

Making Head or Tails of the Currency Market

We have not discussed the currency market for a while. However tracking movements in currencies is crucial in trying to decipher what is happening in other financial markets. And regardless whether or not you trade or hold foreign currencies in your portfolio, the relative strength of the dollar affects your investments. Consider the following. The

Making Head or Tails of the Currency Market

Hold Dividend Payers To Weather Market Volatility

So far in 2018, equities have swung wildly, leaving market participants with whiplash. Consider that the S&P 500 rose +7.5% in January, fell -11.5% in early February, jumped back +10.5% in March, fell back -8.2% at the end of March, rallied +5.4% in early April only to give back -3.7% since last week. Phew! Investors

Hold Dividend Payers To Weather Market Volatility

What I have learned over 50+ years of trading

Change is constant. Markets are competitive. For the owners and managers of assets, only students of the market survive. We must learn to adapt to change. That involves the continuous study of  ​social and political change, macro-economic data and business conditions, international trade and taxation, commodity prices, interest rates and market liquidity, emerging markets, industry life cycles, corporate balance sheets and operating fundamentals, investor sentiment, trading research methodologies, and so forth. Needing to be a specialist at just one thing is a myth. Multiple interests and skills are required.

We all have it in our power to develop sufficient expertise to trade as well as most professionals. However, like anything in life, the experience needed to survive and prosper takes time and should not be rushed.

How to trade, survive and prosper

Through our publications, we offer a practical guide that incorporates an holistic approach to trading capital markets. Before we should buy any security, we need to understand the market and how to trade.

We believe we should buy only what we need and to buy the highest quality. The basic choices are Growth, Value or Yield. You should ignore any other marketing label put by to the sell-side. Understand that large-, mid- and small-cap companies or companies that operate in different regions of the world is simply your preference.

To ascertain the highest quality for Growth, Value and Yield requires a study of corporate fundamentals, comparing performance of one company to all other companies. In our proprietary database of almost 5,000 companies, we input the data of about 15 datapoints from Bloomberg and Thomson Reuters and then calculate weekly composite scores for Growth, Value and Yield, which we then rank from best to worst. For the most part, we are interested only in the highest quality companies. For order entry timing optimization, we study the market price & volume data for each of these companies from about 50 datapoints we capture from various sources on a daily and perhaps intra-daily basis.

Each portfolio is created and managed to meet different investor requirements; however, the trading methodology we use is consistent with what we know from experience works.

To guide our readers, we produce a Cara 100 list that balances Growth, Value and Yield considerations. This freely accessible list of what we consider to be quality companies is updated at the end of each quarter year, based on relative fundamentals, giving a range of large-, mid- and small-cap companies.