Article Category: Psychology

Could a Bad 2018 Yield a Better 2019?

Sigma Point Capital Logo

The final quarter of each year is often a seasonally strong period for stocks, but not so this year, as the market found itself in a seemingly endless freefall. This culminated with the final month of the year being the worse December since the Great Depression, a rather unnerving fact.

But is it possible there’s a silver lining to 2018 that could, in the long run, actually be a net positive? Using some mental gymnastics (which I’m quite good at), I think the answer may actually be yes.

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Posted in: Federal Reserve Interest Rates PMI Data Psychology Volatility Yield Curve

A Fond Farewell to DTL

By now most of you are probably aware that this is the last week that Dow Theory Letters will be published. If you haven't had a chance to read the message that was sent out this morning, you can read it here (link no longer active), on the announcements section of the website.

Since this is the last time that you'll hear from me via DTL, I thought I would take a moment to say some goodbyes, reminisce a bit, and let you know what I'll be up to in case you'd like to continue following my work.

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Posted in: Dow Theory Economy Interest Rates Psychology Recessions

Basic Probability Theory

Probability Theory

The unfortunate reality is that nothing in this world is certain. In fact, the only thing in life that is certain ... is that nothing is certain. This is especially true when we talk about money and investing. Since we can't deal with certainties, we're forced to deal with probabilities. Therefore, probabilities become the lens through which we must view all things investment related.

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Posted in: Behavioral Finance Educational Psychology Risk

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