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.

Bulls Step Up Joust With Bears

We had a rather slow news week giving way to a tight trading range on equity indexes. Chinese and U.S. negotiators have been working line-by-line through the text of an agreement that can be put before President Trump and counterpart Xi Jinping to defuse a nearly year-long trade war. As talks are not public, traders

Bulls Step Up Joust With Bears

Volatility Picking Up, Yields Inverting As Equities Near Highs

As the world crumbles around the U.S., within the New York stock market, prices have seemed immune to events outside America. The U.K. Parliament is pushing Brexit towards a crisis by failing to agree on an exit deal. European leaders just accorded the U.K. three more months (pushing back the March 29 deadline for the

Volatility Picking Up, Yields Inverting As Equities Near Highs

Mining A Few Stocks At The PDAC

  The week’s news has been dominated by Brexit. The Brexit process could see yet more twists and turn this week following another defeat of Prime Minister Theresa May’s withdrawal deal. U.K. lawmakers rejected the deal again on Tuesday evening by 149 votes, despite some latch-minute assurances from the EU. The Brexit situation remains a

Mining A Few Stocks At The PDAC

Growing Risk Of An Earnings Recession

The weekly winning streak for U.S. stock finally came to an end in the final full week of March. Not much news this week to drive equity prices. The fall in equity prices this week was simply due to the trading algos which pushed key indexes to major resistance levels, then reversed into sell programs

Growing Risk Of An Earnings Recession

Stocks Up, Bonds Up. Which Market Is Wrong?

Nine weeks of gains for U.S. stocks. Credit for the rally again goes to “trade hopes” (the media is at a loss in explaining this rally). But in reality, this is a momentum squeeze trade, killing all those who assumed a second down-leg in stocks would follow the December crash. Equities are getting more over-bought

Stocks Up, Bonds Up. Which Market Is Wrong?

An Unpriced Risk For Equities?

Make it eight weeks of gains for U.S. stocks. No one foresaw more than a short-covering rally in December. When everyone thinks the same way, the market will go the other way. The rally since December 24 is more amazing than the rally to start 2018 on news of the Trump tax cut. Nothing has

An Unpriced Risk For Equities?

End Of Fed Tightening. Stocks Watch Out Below!

The six week rally in U.S. stocks fizzled out this week. As has been the case of late, new on the Trade War front got credit for reversing down gains early in the week. President Trump on Thursday said he would not meet with Chinese President Xi Jinping before the March 2 deadline to reach

End Of Fed Tightening. Stocks Watch Out Below!

Fed-Up…And Then Some

It has been an interesting two months on financial markets. After the worst month of December for U.S. equites since the 1930s, we got the best January since 1987. Wild market swings on very little change in macro fundamentals. Obviously speculation over the popping of the equity bubble and forced unwinding of leveraged long positions

Fed-Up…And Then Some

Gold & Goldminers: A Time To Buy

  If it’s not a melt-down, it’s a melt-up. December’s ugly persistent sell-off — with the S&P 500 collapsing – 16% in the month before coming off the worst levels, has turned into a V-shaped swing in the indexes. January’s equity performance is looking like a mirror image of December, with the S&P 500 up

Gold & Goldminers: A Time To Buy

May You Live In Interesting Times

The December equity meltdown saw most equity investors throw in the towel. Our WMA U.S. Composition Market Risk Indicator indeed fell into the capitulation zone. Everyone who had fears of the Fed Equity Bubble popping sold their holdings. Fund managers took defensive action to raise cash and/or hedge positions. As a result, it is not

May You Live In Interesting Times

Looking at F-Score Variations

In last week’s article, “It’s A Stocks Picker’s Market. Here’s How We Are Picking Them”, we outlined our use of our fundamental ranking methodology in building a high-quality portfolio. In that article, we focused on our system of company fundamentals that we use to calculate composite “F-scores” for Growth, Value and Yield that we then

Looking at F-Score Variations

It’s A Stock Picker’s Market. Here’s How We Are Picking Them

What a first week of the year for stocks! First, a mildly negative PMI manufacturing number out of China, halts the relief rally in equities. Next, Apple warns of slowing revenue growth, due especially to a slowdown in sales in China with the trade conflict. A goofball Trump economic advisor predicts “a heck of a

It’s A Stock Picker’s Market. Here’s How We Are Picking Them

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.