Author: TradeSmith Research Team

Our TradeSmith Research Team is dedicated to bringing you the most timely market updates.

What if U.S. long-term rates go to zero?

August 2, 2019 / by

What is going to happen in the next few years? Where will markets go in the new decade that kicks off with 2020? What is the best way to position a portfolio for, say, the six-year window from 2020-2025? This is an incredibly important question. Getting it right — or wrong — could mean the … Continued

It’s true: Outperformance is concentrated in a shockingly small group of stocks

July 31, 2019 / by

If you have a poorly performing stock in your portfolio and you’re hoping it might make a comeback, here is some bad news: That comeback isn’t likely. Most “dud” stocks tend to stay duds. Not only that, it turns out that well over half of all stocks lose money — even during bull markets, and … Continued

Get Ready to “Navigate and Immunize” for the Coming Paradigm Shift

July 24, 2019 / by

As we get ready for 2020 and a whole new decade, there is reason to believe big changes are coming. The next 10 years of market activity could look wildly different from the last 10. Many investors will find themselves unprepared for this — but you can be ready. According to legendary hedge fund manager … Continued

A Curious Father of Chaos Theory

July 17, 2019 / by

Mitchell Feigenbaum, a founding father of Chaos Theory, died at age 74 on June 30. Feigenbaum is worth remembering because Chaos Theory changed the face of scientific research, and in so doing, changed the world. As investors, you and I directly benefit from the insights of Chaos Theory to this day. Mitchell Feigenbaum helped bring … Continued

Solar Stocks Could Be Gearing Up For a Multi-Year Bull Run

July 12, 2019 / by

For more than a decade, solar energy stocks have been on a “solarcoaster.” This has made the ride uncomfortable for solar investors. But big things are happening behind the scenes — and solar stocks could be gearing up for a multi-year bull run. The “solarcoaster,” an industry nickname, is a boom-bust pattern created by government … Continued

The Two Types of Investment Risk (That Every Investor Should Know)

July 10, 2019 / by

Academic theory recognizes two types of investment risk. Understanding both types of risk, and the difference between them, can help make you a better investor. There is also a money-making opportunity here. Let’s take a look. The two risk types are idiosyncratic risk and systematic risk. One exists at the level of individual companies or … Continued

How to Profit From the Pygmalion Effect

July 3, 2019 / by

Successful investing is as much about behavior as it is about math or analysis or picking the right stocks. That is why traits like consistency, discipline, and self-control can translate into long-term profits for the individual investor. In short, improving behavior can improve results. That is exciting because there are so many factors beyond our … Continued

Why Negative Interest Rates Are a Positive for Gold and Bitcoin

June 28, 2019 / by

Gold and Bitcoin are having a resurgence. You could even call it an awakening. Gold recently broke out to six-year highs above $1,400 per ounce. More importantly, gold has broken out of a giant base-building pattern more than five years in the making. Bitcoin, meanwhile, recently smashed through the $10,000 barrier, and soared as high … Continued

Why Investing is Harder Than Physics (and What to Do About It)

June 26, 2019 / by

Dr. Richard Feynman, the Nobel Prize-winning physicist, once reportedly said at a Caltech graduation ceremony: “Imagine how much harder physics would be if electrons had feelings!” This offers a clue as to why investing is harder than physics. “Feelings” are a tough nut to crack. While scientific elements behave rationally, markets behave emotionally. Investing is … Continued

Crude Oil is Sending a Bearish Signal for Emerging Markets

June 21, 2019 / by

Should you invest in emerging market equities? Numerous research houses say yes. Some money managers have favored the emerging market growth story for many years, on the grounds that emerging market equities have a better long-term growth story and less of a valuation premium than U.S. equities. But the valuation gap in favor of U.S. … Continued