Author: Richard Smith

The Four Most Common Financial Media Fallacies

April 17, 2019 / by

There are four fallacies that show up in the financial media over and over again. You can find them on a constant basis, in countless articles, stories, and reports. Pundits on cable financial channels spout them off daily — and investors can fall prey to them in their own thinking. These fallacies are common because … Continued

This Unloved Commodity Could Be an Excellent Investment

April 12, 2019 / by

As a rule of thumb, commodities are not great investments. But under the right circumstances, a commodity can be an excellent investment. In the commodity business, they have a saying: “The best cure for high prices is high prices. And the best cure for low prices is low prices.” The saying captures the ups and … Continued

The Five Risks of Retirement

April 10, 2019 / by

“More return with less risk ” is a key goal for TradeSmith. That is what our software is meant to help you achieve. This is really important, too — more important than ever, in fact — in the context of retirement goals. Retirement should be a happy time in life. The word “happy” is used … Continued

The Profitless IPO Boom Has Parallels to 1999

April 5, 2019 / by

“If you didn’t come to party, don’t bother knockin’ on my door.” That is a line from the classic Prince song 1999, which also contains the line “Two thousand zero zero party over, oops, out of time.” The Prince song was released in the early 1980s. The actual year 1999 was an epic party for … Continued

Two Techniques for Avoiding Investor Groupthink

April 3, 2019 / by

Markets behave rationally most of the time. But at various points in the market cycle, irrational behavior can lead to extremes. Mr. Market is like the typical human being this way: Logical and grounded most of the time, but occasionally way out of bounds. For investors, these irrational periods are when markets are at their … Continued

Inverted Yield Curves are Bullish for Growth Stocks

March 29, 2019 / by

The yield curve inverted for real on March 22. It was a far more serious episode than the mild inversion we wrote about in December 2018. We told you not to worry about that last inversion. The latest inversion is more serious, and a warning sign for the economy — and yet it could also … Continued

Why Growth Could Keep Dominating Value — and Why Risk Control is More Important Than Ever

March 27, 2019 / by

As of this writing, value stocks have underperformed growth stocks for the second longest stretch in recorded history. For a big reason that many investors don’t see, this underperformance could continue for years to come, which makes risk control measures more important than ever. Long-term investing advocates don’t seem to grasp why growth stocks could … Continued

U.S.-China Trade Deal Update: Things Have Gotten Complicated

March 22, 2019 / by

The U.S.-China trade narrative has gone from simple to complex. That increases the risk to future stock market gains. There are multiple factors intertwining here that muddy the picture: As of the March 20 close, the S&P 500 had risen nearly 13% for its best yearly kick-off since 1998. The size of the early rally … Continued

This Four-Word Phrase Shapes the Thinking of Top Venture Capitalists

March 20, 2019 / by

There is a powerful phrase that shapes the thinking of top venture capitalists. The way of thinking captured in this phrase is helpful for stock investors, too. As a mindset, it helps tame the uncertainties and risks that are a constant reality of investing. First, let’s consider some background. The successful venture capitalist (VC) has … Continued

The Rise of Electric Vehicles (EVs) is Long-Term Bullish for Lithium Miners

March 15, 2019 / by

The electric vehicle revolution is coming. That is long-term bullish for lithium prices and lithium-related mining plays because of lithium-ion battery needs. We don’t think it’s time to buy lithium plays right now, but we are keeping tabs on the space. Lithium and cobalt prices saw a big run-up in 2017, and then crashed. Top … Continued