Category: Alternative Investment Strategy

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Alternative Investment Strategy

The Construction of Indices: Shaping Market Trends and Investment Strategies

There is a common belief that active investors set the pace in the market, while passive indices merely follow their lead. As a result, passive indices can operate with lower fees since they abstain from making subjective judgments about individual companies and instead focus on constructing weights and making necessary adjustments. Given the substantial surge […]

Storm Clouds
Alternative Investment Strategy

The Current State of the Market: Volatility, Computer Trading, Buybacks, and Future Concerns

The current headlines include a debt ceiling crisis, inflation issues, rising rates, collapsing home sales, and bank failures piling up at a rate exceeding the 2008 mortgage crisis. With this, the equity market seems nonplussed as it motors along at a pedestrian rate with few days even moving in the 1-2% range, let alone higher. […]

Alternative Investment Strategy

Unintended Consequences: Inflation, Housing Market Challenges, and Corporate Restructuring

Surging liquidity encouraged by central banks and government stimulus pushed inflation rates to a 40-year high causing surprise to leaders that thought they could support markets without consequence. In a desperate bid to slow these price increases, they are taking a page from the movie industry by removing Everything, Everywhere, All at Once. Not on […]

Alternative Investment Strategy

The Threat to the Almighty Dollar: Is the World’s Reserve Currency at Risk?

“When the United States sneezes, the world catches a cold.” This saying reflects the dominance of the US markets, and with it comes the gift of producing the “world’s reserve currency.” However, the rise of digital currencies and competitors to the dominant US dollar is becoming a daily conversation. Governments worldwide desire the benefits that […]

Alternative Investment Strategy

One Crisis to the Next: The New Fed Management Style

We can always count on the government for a few things, including surprise that their policies led to negative outcomes, fixing those decisions by throwing massive amounts of new money at the problem they created, and finally blaming others for the mess that occurred. Inevitably, “the fix” will cause another issue in the future, but […]

Alternative Investment Strategy

How SVB Banked on Low Rates and Lost Big

Rising interest rates claimed their first big victim last week. The stunning collapse of Silicon Valley Bank (SVB), which was the 16th largest bank in the United States, as recently as last Wednesday took two days of relentless outflows before the Federal Deposit Insurance Corporation (FDIC) stepped in to shut them down. The lender, known […]

Chinese currency
Alternative Investment Strategy

Politicians Always Choose Money Printing

“A politician’s first goal of governing is to get re-elected. It is also the second goal. Everything else comes after that.” While seemingly trite, this phrase was repeated by my professor throughout my business school class on strategy in non-market environments. I often think about this concept as our leaders consistently make decisions contrary to […]

Alternative Investment Strategy

Is Sovereign Debt the Next Asset Bubble to Burst?

Empires rise and fall. This often happens slowly and then quickly. In hindsight, we can identify critical events that should have raised alarm bells but did not. So, like asset bubbles that can crash an economy, identifying the next catalyst can be difficult. But perhaps, the mounting debt of countries like the United States, most […]

Black Swan
Alternative Investment Strategy

The Dangers of Black Swan Events for Option Sellers

Investors flock to high Sharpe ratio managers on sites like for a good reason. They display an uncanny ability to put up positive numbers almost every month. Option sellers seem to do this better than anyone, and they stand out when looking through hundreds of managers. If this one marker told the whole story, […]

Alternative Investment Strategy

Economic Outlook: Navigating the Business Cycle

All economies go through fairly predictable patterns as they go through a business cycle. In simple terms, we go from expansion to peak, contraction, and trough. The depths of this drop vary based on both predictable and unpredictable factors. Let us look at some quantifiable factors as well as some wild cards that can impact […]

Storm Clouds
Alternative Investment Strategy

The Economic Events that Shaped 2022

The English expression “May you live in interesting times” is claimed to be based on an ironic Chinese curse as most of us would prefer to live fairly peacefully. While some variety is nice, this year, it felt a bit more like the perfect storm of calamity. We covered many events throughout the year, but […]

Alternative Investment Strategy

A Futures Broker Can Help Avoid Costly Mistakes

Years of investment marketing tell us that a fund’s expense ratio is the most important characteristic we should look for in our asset selection. So it is unsurprising that the first question I often get is, “How do you get paid if I open an account with you?” The question I get less often is, […]

Alternative Investment Strategy

Prices Aren’t Falling

Inflation fell according to the last CPI (Consumer Price Index) report in the United States, setting off a furious 5% rally in equities as Fed policy finally takes hold. However, according to Forbes, prices increased 0.4% month over month, bringing the rate down to 7.7% on an annualized basis, which they believe is reason to […]

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