Observations on
Psychology and the Markets
A sideways, or range-bound, market represents an equilibrium between buyers and sellers. I wrote a piece over at seeitmarket.com recently about the S&P 500 settling into a price range between its 50-day moving average (a common short-term trend indicator) and its 200-day moving average (a good long-term trend indicator).
I was very interested to see the folks at Visual Capitalist run a piece on big media stocks and how the industry has evolved. Their main infographic illustrated the relationship between the largest media names, with an emphasis on the impact of key mergers in the works such as between Disney and 21st Century Fox.
Being a mindful investor means you learn from the past, focus on the present, and plan for the future. One way to learn from the past is to review the top and bottom performing stocks over a certain time period and think about what you got right and what you may have missed.
There is no doubt that automation and AI will continue to impact the financial industry in the coming years. But as I read about Wells Fargo using AI to rate stocks, three things came to mind that bring to light the benefits and the challenges of automating the research process...
I posted an article on airlines over at stockcharts.com after I noticed the group strengthening on the RRG chart. A great example of using data visualization to focus on outliers within a group of names...
As I continue my quest to clean out my Pocket queue, I came across an article from Ben Carlson on his A Wealth of Common Sense blog called "The Art of Doing Nothing." In my endless pursuit of the perfect work/life balance, I have often thought about the trap of "busyness" and the perils of pursuing perpetual productivity...
I wrote an article for seeitmarket.com on the Utilities sector, highlighting five key stocks to watch in the space. While we're often drawn to the stocks and sectors making headlines, sometimes the best ideas are out there in unexpected places!
