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.

Cara's Commentary & Community Chat, Thurs., Feb. 26, 2009

[8:39am ET] I am now in Toronto, listening to the Canadian financial channel BNN TV, which I don

Cara's Commentary & Community Chat, Thurs., Feb. 26, 2009

Cara's Commentary & Community Chat, Wed., Feb. 25, 2009

[8:32am ET] Nationalization by any other name is still taxpayer support of companies that should be in the private sector. Political fingers get into the pie, government grows larger and more forceful, and deficits either grow or tax rates grow. It

Cara's Commentary & Community Chat, Wed., Feb. 25, 2009

Cara's Commentary & Community Chat, Tues., Feb. 24, 2009

[8:22am ET] There is no shortage of chat topics this week. It could be about Washington -- the new financial capital of the world. How about Adobe -- the latest hacker

Cara's Commentary & Community Chat, Tues., Feb. 24, 2009

Cara's Commentary & Community Chat, Mon., Feb. 23, 2009

Cara's Commentary & Community Chat, Fri., Feb. 20, 2009

[7:18am ET] In our demands for transparency, I am wondering just how far the US government intends to push. They took the right to look at our credit card transactions; they tape all international telephone calls and record all e-mails in and out of the US; and now they demand to know our bank account numbers so they can review our transactions.

Cara's Commentary & Community Chat, Fri., Feb. 20, 2009

Cara's Commentary & Community Chat, Thurs, Feb. 19, 2009

[7:14am ET] One part of the Cara Crystal Ball is linked to studying the reactions of the market to the release of key macro-economic data. Like any geologist, as traders mine the data, they are looking for anomalies, not just in the differences between the actual data to what had been consensus estimates, but also to the market's reaction to the so-called

Cara's Commentary & Community Chat, Thurs, Feb. 19, 2009

Cara's Commentary & Community Chat, Wed, Feb. 18, 2009

[9:35am ET] "I remind you that the darkness always is worse before the storm comes in to clear it away. A couple years ago I wrote here that millions of Americans would be foreclosed and many put out on the street. Early this year, I wrote that unemployment would become a very serious issue

Cara's Commentary & Community Chat, Wed, Feb. 18, 2009

Cara's Commentary & Community Chat, Tues, Feb. 17, 2009

[7:45am ET] There is a lot of discussion here about gold, and rightly so. Gold is the only real money. As fiat money has been systematically destroyed by reckless bankers and overspending governments, financial returns on capital have plunged and interest rates have sunk to near zero in an effort by the monetary authorities to cause private capital owners to take risk.

Cara's Commentary & Community Chat, Tues, Feb. 17, 2009

Cara’s Commentary & Community Chat, Mon, Feb. 16, 2009

[8:50am ET] [From the Week In Review} ...it came to me by the end of this week that President Obama's honeymoon is over. It would be easy to make that statement following the results of the vote on the economic stimulus bill that were 100% divided in Congress along Party lines. But, it's more serious than that.

Cara’s Commentary & Community Chat, Mon, Feb. 16, 2009

Cara's Commentary & Community Chat, Mon, Feb. 16, 2009

[8:50am ET] [From the Week In Review} ...it came to me by the end of this week that President Obama's honeymoon is over. It would be easy to make that statement following the results of the vote on the economic stimulus bill that were 100% divided in Congress along Party lines. But, it's more serious than that.

Cara's Commentary & Community Chat, Mon, Feb. 16, 2009

Cara's Commentary & Community Chat, Fri, Feb. 13, 2009

[5:25am ET] I believe that Humungous Bank and Broker (HB&B) is purposefully and systematically destroying the stock-broking, insurance-broking and mortgage-broking industries and that nothing good will come of this process. Because the principle of independent research, objective analysis and free choice is being increasingly denied us, the public is becoming a bank chattel. At some point, there will be a massive rebellion. I believe this event will occur on President Obama's watch.

Cara's Commentary & Community Chat, Fri, Feb. 13, 2009

Cara's Commentary & Community Chat, Thurs, Feb. 12, 2009

[9:40am ET] Given that I will be reviewing Disney (DIS) in the Week In Review on Sunday, Pierre Brodeur posted his evaluation on the blog today. Please click on the top menu bar link for "Quant". Pierre will do this on every Cara 100 I subsequently review in the WIR, which I think will help your trading.

Cara's Commentary & Community Chat, Thurs, Feb. 12, 2009

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.