Over a third and growing quickly. That’s the share of the market that’s now comprised of blind sheep passive indexers. That much passive money is nothing to sneeze at. Call me old-fashioned, but I was originally led to believe that the function and role of markets in a capitalist society was to direct capital to […]
According to Ray Dalio (and we believe this as well) there are four drivers of economic growth: culture, indebtedness, competitiveness, and luck. And the two most positive influences on these growth drivers are  the psychological framework that creates people’s desire to work, borrow and consume and  war. It’s these different socioeconomic experiences that […]
If you’re wondering why “Adam Smith” is in quotations, it’s because the name is the pseudonym adopted by the author who wrote The Money Game, a 1967 market classic. In the author’s own words, the book is about “image and reality and identity and anxiety and money” — everything that makes up markets… Here’s some […]
Things could get real interesting in the next few months. On Oct. 17th a new SEC rule finally comes into play that will affect money market funds and liquidity across the financial sphere. There’s potential for some really big moves here.
“The generally accepted view is that markets are always right — that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the […]
One of our favorite movies at Macro Ops is Terminator 2: Judgement Day. The early 90’s classic had Arnold at his best and changed the sci-fi action genre forever. People have always had a particular fear of technology and machines, but Terminator really solidified that picture. How many times have you heard the “Skynet” argument […]
As an active trader, there are 3 key factors of your strategy that you need to pay close attention to. There’s no holy grail in trading, but tweaking and maximizing these 3 things can get you pretty damn close to one.
“The Fed is manipulating markets…” “Central Banks are destroying capitalism…” “Yellen has distorted true price discov… yada-yada-yada” We’ve all heard the constant chorus of central bank bashing. The ridicule comes from a diverse crowd, ranging from retail Joe Schmoes to prominent hedge fund managers… and I admit, Fed economists make for easy targets.
The markets are rallying hard! In this Market Sitrep we explore what’s ahead for U.S. equities in the near term. We examine the 3 main drivers of the rally, and then dive into why this breakout may actually have some legs. The episode finishes with a look at all the stocks we have bought or […]
Options. They’re supposed to deliver you 1000% returns overnight, week after week right? That’s what a lot of these internet trading “gurus” will tell you anyway… But the reality is far different. Options are a zero-sum game. When one person wins, another loses. The winners are few.