Category: Alternative Investment Strategy

All economies go through fairly predictable patterns as they go through a business cycle. In simple terms, we go from expansion to peak, contraction, and trough. The depths of this drop vary based on both predictable and unpredictable factors. Let us look at some quantifiable factors as well as some wild cards that can impact […]

The English expression “May you live in interesting times” is claimed to be based on an ironic Chinese curse as most of us would prefer to live fairly peacefully. While some variety is nice, this year, it felt a bit more like the perfect storm of calamity. We covered many events throughout the year, but […]

Years of investment marketing tell us that a fund’s expense ratio is the most important characteristic we should look for in our asset selection. So, it is unsurprising that the first question I often get is, “How do you get paid if I open an account with you?” The question I get less often is, […]

Inflation fell according to the last CPI (Consumer Price Index) report in the United States, setting off a furious 5% rally in equities as Fed policy finally takes hold. However, according to Forbes, prices increased 0.4% month over month, bringing the rate down to 7.7% on an annualized basis, which they believe is reason to […]

Want access to some of the largest programs in the world at a lower entry point? Typically, investment options come through either a separately managed account with high minimums or a fund product with limited liquidity and less flexibility than a standard futures account. A managed account platform bridges this gap by offering increased liquidity, […]

Investors generally do an excellent job of looking at their equity allocations at the portfolio level. A single stock that drops 30% in an otherwise steady(ish) overall plan rarely gets much focus. On the other hand, a futures program that dropped 30% would often net a lot of attention. Some of this might be attributable […]

Is the equity market giving you heartburn? Bond market, too? Perhaps traditional asset classes lulled us into a false sense of confidence. After all, since 2008, outside of a few hiccups, returns provided ample reason to believe that our portfolios were destined to keep growing. But, as a trader once said to me, “Sometimes trading […]

The Efficient Market Hypothesis, introduced by Benoit Mandelbrot and popularized by Eugene Fama, infers that investing markets reflect all information to determine prices. Therefore, if the Fed is expected to raise rates by 75 basis points, the current market levels should reflect that consideration. This also means that nobody should be able to “beat the […]

We addressed the looming energy crisis in Europe in several articles, including the “War on Low Energy Prices,” It appears the day of reckoning is quickly approaching. However, they are choosing paths that I did not anticipate. In reaction to Russia closing the pipeline, the Europeans proposed two solutions; capping the amount that Russia would […]

Where did the bankruptcies go? Despite the world locking down, the expected spate of business failures did not materialize as expected. In fact, they barely showed up at all. According to Matt Taunt of Taunt Law Firm, a Michigan-based firm specializing in the area, “Filings fell off a cliff in 2020 to lows not seen […]

If you find someone who thinks it is smart to go without insurance for their house, you might think they are insane. After all, our home is a large asset, protects our family’s safety, and provides the comfort of a roof over our heads. Our vehicles are worth even less and get the same treatment. […]

While the number of hedge fund types is virtually unlimited, all hedge funds are supposed to hedge risk (thus the name). Many investors believe this means that their investment with these managers will turn a profit when the rest of their portfolio is losing. The chart below proves this is not the case. The reason? […]

Much like Mark Twain, tales of the death of oil seem to be greatly exaggerated. In fact, the U.S. Energy Information Administration predicts that by the year 2050, we will be using slightly more fuel than we are now, with little change from year to year (see chart below). Famed investor Warren Buffet increased his […]