Alphablock

Category: Markets

  • Do you need a 4% allocation in NVDA to outperform the S&P 500?

    Do you need a 4% allocation in NVDA to outperform the S&P 500?

    The passive investing landscape has found a new focal point: NVDA’s 4% weighting in the S&P 500. This raises a pertinent question: Must an Active Manager allocate precisely 4% to NVDA to surpass the S&P 500’s performance? The answer is no. For instance, the E&R U.S. 500 Indexed Model, which allocated only 2.5% to NVDA,…

  • Why is E&R seeing no recession?

    Why is E&R seeing no recession?

    Should an Index be designed with an intrinsic capability to anticipate and be a true bellwether? This question can evoke a lot of debate because the whole thesis of modern finance is built around the inability of forecasters to forecast. So, if forecasters can’t forecast, we are left with S&P 500, a concentrated benchmark, where…

  • The Campbell Recession

    The Campbell Recession

    “The Story of Two Campbells: Understanding the Limitations of Economic Indicators” In the world of economics, two individuals named Campbell have made significant contributions to our understanding of economic indicators and their limitations. Campbell R. Harvey, an economist and professor of finance at Duke University, has published extensively on the topic of yield spreads and…

  • Exceptional & Rich [E&R] Scorecard 2022

    Exceptional & Rich [E&R] Scorecard 2022

    Exceptional & Rich [E&R] Scorecard 2022 Did you know that if you can beat the S&P 500 by 100 basis points [1%] net of fees you are in the top decile of asset managers in the world? Did you know that E&R is an open methodology which improves on the concentration challenges of the market…

  • E&R U.S. 500 Beats S&P 500 by 8.33%

    E&R U.S. 500 Beats S&P 500 by 8.33%

    Exceptional & Rich U.S. 500 [E&R U.S. 500] is based on an open method that is designed to beat [Outperform] the S&P 500 without concentrating on a few stocks. Concentration in the S&P 500 not only creates risk but also forces the overall market into a long recovery period. The E&R U.S. 500 model started…

  • Oil@300?

    Oil@300?

    Is Oil headed to $300? On a recent weekend trip outside Toronto, my wife asked me casually about the burning subject of increasing gas prices.  “How much further is Oil headed?” My fast response was that it was headed to $50 before turning back up to $300. She jumped out of her seat and before…

  • Nowhere To Hide

    Nowhere To Hide

    I was asked by an Advisor friend, what to do with the portfolios. My first response was not to book losses. Knowing that portfolios were mauled, there was limited salvage value. The conversation continued and I told him there are always opportunities to invest, be it Agricultural Commodity ETFs, frontier markets, and/or some emerging markets.…

  • Why’s your portfolio down 75%?

    Why’s your portfolio down 75%?

    Why’s your portfolio down 75%? There is a chance that your portfolio is not down 75%, in case it is, don’t lose hope. Remember, the stock market is a train station, there is always another train.  And you might want to remind yourself about the Bill Graham quote, “If money is lost nothing is lost,…

  • Jamie Dimon’s Letter

    Jamie Dimon’s Letter

    Jamie Dimon’s Letter As a research company we are always steeped in Scientific research, on the other side of Information – the context side – being agnostic to content. Hence reading shareholder letters and 10Ks is not a part of our regular readings.  However, reading the letter was an attempt to understand what’s the message…

  • Why am I Short?

    Why am I Short?

    Let’s first explore, why is it hard to Short?First; Stocks can go up 100 times but they can fall by 90% or go bankrupt. So the payoff is asymmetric. The profit is capped on the downside but are significant on the upside.