Author: TradeSmith Research Team

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

The Peltzman Effect: How Safety Perception Increases Risk

May 15, 2019 / by

High-end sports car dealers like to say brakes help the car go faster. How can this be, when brakes are meant to slow a car down (or bring it to a complete stop)? The answer is that a world-class braking system makes it safer to accelerate and top out at higher speeds. If you know … Continued

Berkshire Hathaway’s Amazon Investment is a Sign of the Times

May 10, 2019 / by

On May 2, Warren Buffett revealed that Berkshire Hathaway bought shares of Amazon as an investment. This is a “spit out your coffee” type moment. Warren Buffett is, by far, the most renowned and beloved value investor of all time. And Berkshire Hathaway, Buffett’s main investment vehicle since the late 1960s, is the most well-known … Continued

Why Retirement Risk is Not “One Size Fits All”

May 8, 2019 / by

Wall Street wants you to believe retirement risk is “one size fits all” so it can sell a mass-market product. But that isn’t the case. “One size fits all” is a great setup for selling pre-packaged solutions in bulk to millions of investors at once. For the actual investor who is paying attention, however, this … Continued

Bulls Are Feasting on a Goldilocks Porridge of Economic Data

May 3, 2019 / by

Stock market bulls are feasting on a “Goldilocks Porridge” of economic data right now. Like the porridge from the famous children’s story, Goldilocks and the Three Bears, the incoming data is not too hot, and not too cold, but just right. That makes a difference because both “too hot” and “too cold” would be a … Continued

The Dangerous Allure of Survivorship Bias

May 1, 2019 / by

The way to build wealth in markets is to do things that are smart and safe. If you develop a playbook of smart and safe investing decisions, you can return to that playbook over and over again. The repeat application of smart and safe habits is a wealth-accumulation process. It’s valuable to create a process … Continued

There’s a Multi-Year Global Meat Shortage Unfolding: Here’s Where to Invest

April 26, 2019 / by

There is a global meat shortage going on. Today we’ll cover two strong investment ideas, as this is part of a powerful trend that could shape agricultural markets for years. A meat shortage might sound funny, but the impacts are deadly serious. The shortage has already become a worst case scenario for China. If the … Continued

Amusing Proof that the Efficient Market Hypothesis is False

April 24, 2019 / by

The Efficient Market Hypothesis, or EMH for short, is a theory that argues it is impossible to do well in the stock market because all information is already reflected in market prices. There are three different versions of EMH, known as the weak, semi-strong, and strong forms. Weak EMH: Quoted asset prices reflect all forms … Continued

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