Monthly Asset Class Review

The SPX was down on the month, but the Nasdaq wasn’t.  The industrials bore the brunt of the fall, with the Dow down over 4% for the month. ETH beat BTC this month.  But the rest of the big cryptos took a beating. Despite Biden’s inflationary policies, government bonds rose on safety concerns.  Investment-grade corporates...

Underrated Movies Set in Foreign Lands With American Actors Giving Amazing Performances

If you’re wondering what to do this weekend, you can do a lot worse than watching one of these films. Travel to France, Germany, or the Middle East with excellent American actors and fabulous foreign supporting casts. My guess is some cartographically-challenged Americans couldn’t grok the foreign plots, so these movies underperformed at the box...

Trade Alert: An ETF In No Man’s Land Between Growth and Value

Demand for momentum stocks tends to rise in response to higher prices. Conversely, demand falls in response to lower prices. That's the opposite of real-world laws of supply and demand. It’s the opposite of a value-conscious investor. This month, Jim and Dan focus on one ETF with holdings of momentum stocks that headed into 2021 with no valuation support. Today they are in no man’s land, caught between momentum investors who have been selling, and value-conscious investors. Value-conscious investors might become buyers of these stocks, but not until prices have fallen much further.

C.O.B.R.A. December Portfolio Update

We recommended exiting a few positions this week that had unusually large percentage increases in last Friday’s global risk-off trading session. The media narrative was that sell-off was due to a new COVID variant. This is why COVID policies are one of the macro factors Jim monitors to guide our trades. For now, Dan updates you on the open positions in the portfolio.