Malaise and Fears of Fed Tapering

The market’s malaise and its poor results on Thursday August 15th are being blamed on fears of Fed tapering.  Unless the Fed has a surprise change of heart, these fears will be with until tapering starts, so examining them is worthwhile.   Most signs suggest the economy will continue to gain strength.  Weekly initial unemployment claims Read more […]

Fear Gauge Spikes: Let’s Play Hot Potato

For what risk does the commodity investor get paid? At what point is the fear gauge so high the risk gets passed like a hot potato? The answers to these questions will help explain why post the global financial crisis there has been a link between VIX spikes and commodity losses. Let’s address the first Read more […]

How Badly is Gold Bleeding?

In light of much negative news about the bust in gold, I thought it might be interesting to share the impact the gold drop has had on dollar exposure in the two most widely used commodity indices, the S&P GSCI and DJ-UBS.  Below is a note we published today in a media bulletin: Good afternoon Read more […]

S&P 500 Foreign Sales – Asia Continues Up, As Europe Continues Down

S&P Dow Jones Indices released their foreign sales reports today (bit.ly/1eGKVbf ). The top-line items are that foreign sales increased (46.6% from 46.1%), Asian sales continued to grow as European sales continued to decline, and S&P 500 issues reversed their income tax payments and sent more to Washington in 2012 than they sent abroad (51.2% Read more […]

Indexing Multi-Asset Solutions

Multi-asset strategies have been traditionally offered via active management. Institutional and high net worth investors have used multi-asset strategies to meet their specific needs such as matching liabilities and achieving absolute returns. As the indexing industry evolves beyond asset class beta and systematic risk premia, we are starting to see multi-asset investment solutions offered in Read more […]

S&P 500 and Dow Jones Industrial Average

The two best known and most widely followed stock indices in the world are the S&P 500 and the Dow Jones Industrial Average.  While both follow large cap US stocks and both have long histories, they are quite different in some important ways. The Dow is the oldest regularly calculated stock index dating back to Read more […]

The Dog Days of Summer

Markets and investors both seem to be thinking about August vacations and little else these days. As we enter the second full week of August – or the third week before Labor Day for the pessimists and workaholics – things seem to be going quiet.  The Dell buyout, just about the only contested M&A action, Read more […]

The Fox and the Hedgehog

The ancient Greeks tell the story of the fox and the hedgehog.  The fox, it is said, knows many things, but the hedgehog knows one big thing. Anyone who reads the Wall Street Journal or listens to CNBC will recognize the vulpine nature of much of the financial world.  One key to investment success is Read more […]

Good Calls and Bad Calls of Covered Calls

Generally investors use covered calls to earn extra income from investments they think might not have much upside potential.  For example, if a CEO has a very large stock holding in his or her company but doubts the stock price will increase (or decrease much), writing (selling) options on the stock to collect a premium Read more […]

Inside the S&P 500: Dividends Reinvested

Slightly more than 400 of the 500 companies included in the S&P 500 pay dividends.  At the current rate, these dividends will be a bit over 2% of the value of the index.  In a strong market like the one enjoyed in the last 12 months when the index price rose over 20%, an extra Read more […]