Ways to Play “Bad” Earnings from “Good” Companies

Investors have relentlessly bashed the likes of McDonalds, IBM, Coca Cola, etc. lately for lackluster (to put it lightly) earnings and forward guidance suggesting such companies (stocks) are un-ownable.  To view such companies through the single prism of equity ownership is a very short sighted investment philosophy.  Simply adjusting your strategy along the capital structure […]

Turn up the vol(ume)atility, drown out what really matters

From the epic movie, The Hunt for Red October, the following series captures what happens when volatility spikes in the markets:   “They’re pinging away with their active sonar like they’re looking for something, but nobody’s listening. Captain Davenport: Well, they’re moving at almost forty knots. At that speed, they could run right over my daughter’s […]

Come Thou Long Expected Correction

Phew! October proved to be one of the wildest months for the stock market in recent memory. At one point intraday on October 15th, the S&P 500 had declined about 9.9% from it’s all-time high — we’ll call this “close enough” to the 10% territory that defines a true stock market “correction,” which is something […]

Sluggish September for Key Sectors of the Market

Despite a generally encouraging domestic backdrop for stocks, the S&P 500 fell approximately 1.4% in September. The third quarter, which featured more volatility than we have seen in several previous quarters, resulted in an overall modest gain of around 1% for the S&P 500. As a result of improving economic data, several of the major […]

Market Accepts Ice Bucket Challenge, Moves Higher in August

Last month, we wrote about how the market rally had frozen in the face of several obstacles that appeared throughout the month. Fortunately, August saw the market shake off those chills and move higher for the month, making new all-time highs in the S&P 500. Over the course of August, the S&P 500 rose approximately […]