Watch These 3 Inflation Indicators

I remember seeing the “WIN” buttons when I was a kid and having my parents explain inflation to me. The buttons, distributed at the behest of President Gerald Ford in 1974, stood for “whip inflation now.” Inflation was bad and whipping it was good. I also asked them what “burn the bra” meant, but they were … Continued

BIG TECH & THE LAW OF LARGE NUMBERS

HOW EXACTLY DID BIG TECH GET TO BE SO … BIG? To paraphrase ben franklin, those who would give up essential privacy to purchase temporary convenience deserve neither privacy nor convenience. Throughout history, humankind has used opposable thumbs and excess brain capacity to make daily existence easier. A line of convenience could be drawn from … Continued

Trading Digital Currency’s Volatility

Trading Digital Currency’s Volatility Volatility. Without it, the world would be pretty dull. It’s what makes cryptocurrencies so appealing to traders and so frightening to regulators. Dramatic price swings—both up and down—make cryptos some of the most volatile assets around.  But volatility breeds risk as well as rewards.  Traders look at the big rallies and … Continued

Trading with a Casino’s Edge

Active investing isn’t gambling for traders who know the odds When someone’s interested in options trading but doesn’t know quite how to approach it, ask a question that provides context just about everyone understands. “Who makes more money, the casino or the gambler?” They always get the answer right.  Casinos make more money than the … Continued

Amazon Primed

Public enemy No. 1, or Wall Street hero? Either way, odds say Amazon will dominate competitors for a long time to come. Consider the great accomplishments of humankind—harnessing fire, inventing the wheel, discovering electricity, achieving flight. Let’s add Amazon to that list. Amazon (AMZN) didn’t invent the internet, or even online shopping, but it used … Continued

Volatile SPACs: Welcome

As low-cap stocks, SPACs have built-in volatility. That’s a good thing.  During the past year, special purpose acquisition companies (SPACs) have grown in popularity, not only because they finance companies but also because they offer opportunities for options traders. For the former, SPACs reduce regulatory hassle and speed up the availability of new products and … Continued

Beware of These Two Mental Traps

What can we learn from the possibility of alien life or the idea that we live in a massive simulation?  If someone wanted to make the Hawaiian language a larger part of our lexicon, the word “oumuamua” would be a good start. When astronomers spotted a smallish (by astronomical standards) object back in 2017, it … Continued

The Smartest Guys in the Trade

Traders don’t need the highest IQ in the room—they can succeed with discipline, quick calculations, confident decisions and a little online help  People are sensitive about IQ. It’s a metric that purportedly reveals intelligence, and everyone wants to be thought of as smart—or at least smarter than average. And in the 100 years or so … Continued

Counting on Volatility

Scientists can only guess when the next pandemic or earthquake will strike, but with the help of volatility traders can quantifiably predict stock prices  The year 2020 will be remembered as tumultuous. With COVID-19, civil unrest and a highly emotional and consequential election, it’s a wonder anyone had time to look at the market. But … Continued

Bulls, Bears & Agnostics

Which party will control the White House and Congress? The dirty little secret is the markets really couldn’t care less. You know Xi Jinping? General Secretary of the Communist Party of China? Dictator for life? Crusher of protests? Look at his picture. If you didn’t know anything about the guy, tell me he couldn’t be … Continued