Charlie Bilello | TalkMarkets | Page 6
Founder and CEO of Compound Capital Advisors
Contributor's Links: Compound Capital Advisors
Charles Bilello, is the Founder and CEO of Compound Capital Advisors. Sharing ideas that compound over time. Prior to that, Mr. Bilello was the Director of Research at Pension Partners, where is he was responsible for strategy development, investment research and communicating the firm’s ...more

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Junk Bond Myths
Junk bonds are bonds, so they should act more like other bonds than stocks, right? Wrong.
Are Trend Following And Gold A Perfect Match?
Market participants are often heard saying things like “you can’t trade Gold on fundamentals.” With no cash flows to discount, Gold is a different animal than stocks or bonds.
The Uncertainty Principle In Markets
When things seem certain, the future looks bright and we embrace risk-taking. When things seem uncertain, it’s hard to imagine things ever getting better, and we shun risk at all costs.
Delivering Negative Alpha
There are more hedge funds in the world than Dunkin’ Donuts. What does that statement have to do with negative alpha? Everything.
The Bond Expectations Bubble
Until the bubble bursts and interest rates rise significantly, bonds are not going to come anywhere near such a return.
Everything Is Awesome!
A year from now markets may be higher but it will be difficult for everything to be as awesome as it is today. That should lead to more uncertainty and higher volatility, regardless of the direction of markets.
When Does A Bubble Become A Bubble?
In July 2010, Bitcoin was trading at 5 cents. By February 2011 it was trading at $1.10. That’s a 2,100% return in 7 months. What’s the first word that comes to mind? Bubble.
One Of The Most Overbought Markets In History
The Dow is trading at one of its most overbought levels in history. At 87.61, its 14-day RSI is higher than 99.999% of historical readings going back to 1900.
When Backtests Fail
With data going back to January 1998, European junk bonds have delivered an annualized return of 7.1%. Not too shabby, especially in the era of negative interest rates.
The Year Volatility Died
When it comes to market volatility, how low is low?
When Mean Reversion Fails
Equities are overvalued and must go down. A recession is long overdue.
Is The S&P The New Money Market?
Is the S&P indeed the new money market? Is it “safe” to “park your money” there for a few months with the expectation that it will only grow?
A Public Service Announcement On Shorting Volatility
If you are thinking about shorting volatility today, truly understand the risk you are taking and ask yourself if you’re willing to accept the possibility of a substantial and even catastrophic loss.
Myths, Markets And Easy Money
Will the markets become harder to navigate in the years to come? I don’t know, but it seems like a reasonable assumption to make given the record-low volatility and unusually low drawdowns we have experienced lately.
How Much Bitcoin Are You Willing To Lose?
In 2010, when Bitcoin was trading at $.09 that word meant nothing to most investors. Earlier this month when it crossed above $5,000, it was all investors wanted to talk about.
Put These Charts On Your Wall…
They say a picture is worth a thousand words but in investing it is worth so much more. Having a few extreme charts on your wall can be a helpful reminder that there is no such thing as “can’t”, “won’t,” or “has to” in markets.
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