Winning the Loser’s Game

According to Charlie Ellis, modern equities markets are a “loser’s game.” What the hell does that mean? And how can we use such an idea to our advantage in the modern market? Allow me to explain.

In the mid 1970s, Dr. Simon Ramo articulated a key difference between a winner’s and a loser’s game by studying tennis players over the course of several years. Ellis sums up the outcome of his research nicely by saying, “Professionals win points; amateurs lose points.”

Continue reading “Winning the Loser’s Game”

Choosing An Investment Platform. Part 1.

So far at here Dynalect, the biggest thing we’ve been focused on is which securities offer the best opportunities for young investors. While that’s certainly important, I would like to take a moment this week to articulate how to invest money once you know what you want to invest in. Some questions to consider might be: Who are the best stock brokers? Which brokers offer the lowest fees? What service is the easiest to use?

Continue reading “Choosing An Investment Platform. Part 1.”

Energy: A Market of Opportunity

Amidst instability in the Middle East and conditions of general political uncertainty throughout the world, the price of oil seems to be back on the rise after suffering crushing downfalls in early 2015. According to the Wall Street Journal, Saudi Arabia, Kuwait, and Iraq have issued a joint public statement claiming they are mutually committed to seeing the price of oil rise to $60/barrel over the next few months.

With that said, the oil market has become much more diverse in the past decade, especially with the rise of American oil production, and it is important to consider that a number of other factors will dictate the future of oil prices in the short and medium term. A potential slow down of the Chinese economy is one such factor that would negatively affect oil prices, but this seems unlikely in the short run especially due to the fact that Trump and President Xi seem to be getting along quite well despite Trump’s less-than-flattering campaign rhetoric towards the Chinese. Continue reading “Energy: A Market of Opportunity”

Trump Bump In Decline?

Global securities markets have been on the rise since US President Donald Trump was elected last November. Investors have been optimistic about the “business friendly” agenda that Trump has carried with him as he has taken over in the Oval Office, and the prices of stocks have certainly shown for it with the S&P 500 up a little more than 8.5% since last November. But even amidst the rising markets, Trump still proves to be a wild card for Wall Street and global markets. The most recent test? Syrian airstrikes.

The news of the United States Navy launching almost 60 cruise missiles into a Syrian airbase sent shockwaves through the market on Friday. Gold reached a 5 month high and the Japanese Yen appreciated considerably as investors around the world fled to traditional safe-havens with their money to ride out the storm. The price of American crude oil was also up almost 1.6%, which is typical in the context of rising tensions with the Middle East due to its obvious geopolitical importance. Asian markets and US futures closed at a loss on Friday. Continue reading “Trump Bump In Decline?”