Blog Posts

A demo account is inherently a different type of trading environment relative to trading the markets in real-time. Because real money is not committed to demo accounts, the results achieved from trading in a simulated, controlled setting can differ materially from the those achieved when trading the markets with real capital. The primary reason is […]

What’s the difference between a recession and a depression? Most think of a depression as simply a really bad recession, but they are two distinct but naturally occurring events. The ineffectiveness of monetary policy is causing financial assets to fall faster than they did during the Great Depression, 1987 (stocks fell hard and fast in […]

Dividend arbitrage is a trading strategy where an investor is long a stock with an upcoming dividend payment and short the equivalent amount of stock through put options. It is designed to hedge against the drop in share prices once dividends are distributed. The basis behind dividend arbitrage When a company issues a dividend, the […]

So, you’ve made one million dollars – or an amount that, when you put it to work in a prudent way, can generate you a solid passive to semi-passive income stream in perpetuity. How to invest 1 million dollars In a previous article, we went through the importance of having a balanced portfolio. Namely, how do […]

The concept of the cash-secured put, or selling put options for income, is one method traders of all stripes (individual, institutional) will use to generate income and/or buy securities cheaper than the current market price. The buyer of a put option pays a premium to the seller for the right to sell shares at an […]

Traders who use a dividend capture strategy usually trade in and out of a stock to obtain the stock’s dividend without having to hold it long-term. Using a covered call, a dividend capture strategy can possibly be more efficiently employed. At the least, it offers a unique method by which dividend capture can be used […]

To start, this is not an article on this year’s annual outlook. We have a piece on intermediate-term financial asset performance (out 5-10 years) and others about navigating the upcoming decades, broken up into a Part I and Part II. Every decade tends to have a different flavor to it in terms of what asset […]

Trading and investing in the 2020s will require a different kind of template than the one that worked in the 2010s. The set of conditions and forces that drove strong double-digit equity returns during the 2010s (at least in the US and developed markets) are no longer in place. In other articles, we’ve covered the […]

This article was published on February 12, 2020 This article will look at estimates of what kind of financial returns can be expected out over the next 5 to 10 years. This will take into account the main asset classes – stocks (developed market, emerging), government bonds (developed market), credit, and alternative risk premia (private […]

This article was published on February 6, 2020. Traders rarely talk about diversification. Part of it is normal in the sense that some specialize in a particular asset class and are prone to the whims of whatever behavior that asset class exhibits and how they’re positioned within it. But for the most part, traders have […]