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Global Market “Risk-on” or “Risk-off”?

Things are happening just like we said it would. In our latest market commentary video we said that you would hear some negative things about the market and economy and the market will increase in volatility. It should come as no surprise to those that listened because that’s exactly what is happening. Over the past week I’ve heard and read a lot of bearish comments about the economy and stock market . . . from rising rates will destroy the bull market to the notion that we are still recovering from the 2008 recession.  I hope you listened to the video and are heeding our advice as it shed light on how you should be reacting to what’s happening. To continue along the same theme in that market commentary video, there is a term in the market known as “risk-on” “risk-off.” When the market is “risk-on” people are more optimistic, the market is
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Categories: Markets and Strategy.

The Return of the Global Markets

The following is a portion of Iron Gate Global Advisors letter to clients. We removed specific investment advice, stock reviews and advice. That is for our clients only. For more information contact Brett Pattison at brett@igga.dev.  As the name of our firm mentions, we are global investors. We like to search the globe for those markets, countries and companies that are cheap (from a valuation perspective) and poised to grow. Over the past three years we have been allocated primarily to the good ole U.S. of A. This has turned out to be the right decision as the U.S. market (S&P 500) has out-performed the other global markets by 58.95%. The table below shows you the 2011 – 2014 performance numbers for the global markets. As we entered 2015 Brian and I talked with one another, and many of you, about the real possibility that the U.S. markets incredible streak
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Categories: Markets and Strategy.

Buy and Hold vs. Timing the Market: Which one is better?

There is debate that has been going on for decades and decades. Of course the two sides of the debate both think they are correct  when answering the question which is more profitable, buy and hold or timing the market? Before I give you my thoughts and answer that question,(which is probably different than any answer you have heard before), let me attempt to make an argument for both. Buy and Hold To make sure we’re all on the same page buy and hold would mean buying a stock, ETF, or mutual fund at a price you are comfortable with and never selling it. That definition seems obvious and the concept seems simple. However, it’s probably one of the hardest investment techniques for most people. Emotions, fear, and lack of discipline are just a few reasons why people have a hard time staying true to the buy and hold investment style. Below
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Categories: Markets and Strategy.

A Glimpse at the Global Markets

Global Markets For the past two years the U.S. market has crushed the rest of the globe! The U.S. (S&P 500) is up 42% compared to 15% for Developed Non-U.S. (Europe, Asia, Australia) and -3.5% for the Emerging Markets (China, Brazil, India, etc.). While no one knows when the rest of the globe will catch or even pass the U.S. the returns year to date are interesting. Below is a chart highlighting the returns of the global markets.   As far as the global PE ratios go, here is a brief list. This list highlights the opportunities from a price perspective. While we remain cautious of some areas of the globe, there’s no doubt that there are some great potential opportunities beyond the U.S. United States – 20.3 China – 10.1 Japan – 16.6 India – 19.1 Europe – 18.7 The Good Ole’ U.S. of A.  According to historical probabilities
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Categories: Markets.

Battle of the indexes: Equal Weighted vs. Market Cap Weighted

The S&P 500 is one of the most quoted indexes in the world. It tracks the largest companies in the U.S. and has become one of the most popular indexes for not only stock market returns but also for comparing performance against (often referred to as a benchmark). It’s become so popular that people have made it a staple in a portfolios by buying an S&P 500 ETF or mutual fund. While plenty of people follow the index, few people actually understand how it’s constructed. The S&P 500 is a market capitalization weighted index. Here’s a quick definition: A type of market index whose individual components are weighted according to their market capitalization, so that larger components carry a larger percentage weighting.  So what does this really mean? It means that as companies grow larger and larger (think Apple or Exxon) they comprise more and more of the S&P 500
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Categories: Markets and Strategy.

A Historical Look at October

Historians! Here’s a quick glance at some of the markets historical October facts. This historical information helps IGGA build portfolios based on probabilities pomme not possibilities. Since 1928 the S&P 500 averages a .4% return. Many famous market drops have cheap mlb jerseys occurred in October including the 1929 and 1987 crashes. October typically ends the six worst months out of the year. This means it’s typically a Metz great cheap nba jerseys time to be a buyer SUSPECTED? for the November – April cheap nba jerseys cycle. Because of its historical Friday low performance, October provides a great cheap jerseys opportunity cheap jerseys to sell out of the money options spreads.  
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Categories: Markets.
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