Weighing the Week Ahead: Does weakness in housing threaten the economy and stocks?

Housing data have clearly hit a soft patch. How much of the deceleration is important? How much can be attributed to weather? Most importantly: Does weakness in housing threaten the economic recovery? What does it mean for stocks? [note to readers. I always try for weekend publication, but sometimes I cannot work then. The links […]

Read More

Mean Reversion: The misunderstood “mystery method” behind big market blunders

The insightful investor understands mean reversion. It is a mystery concept for most – fancy talk. I will attempt a commonsense explanation with some relevant examples. In conclusion, I will show why this is important. The Technical Definition Wolfram MathWorld is a great source on issues like this: Reversion to the mean, also called regression […]

Read More