The Traders Journal

September 2017

The Traders Journal

Charts I'm Stalking: Action Practice #21

by Gatis Roze

Most investors will admit that they have at some point been guilty of chasing yield.  This is not surprising with the ultra low yields on money market accounts and the expanding Baby Boom generation’s needs for income.  It’s a common refrain.   Problems arise when one does not completely understand the risks and potential costs associated with “stretching for higher yields”.  In Action Practice #20, I offered you nine different exchange traded funds from which to choose, with yields being one of the attractions. Read More 

The Traders Journal

Do Investors Love Their Children Too?

by Gatis Roze

The Public Relations industry has crisis simulation firms that actually come into corporations and compress a hypothetical month-long disaster into a few stressful hours in order to see how management responds. I’d like to do something similar, but in the family financial arena with parents and children. Sadly, however, I don’t think many parents would hire me.  I’m in both the educational and the investment arenas, and from what I’ve witnessed, I feel that we have an entire generation that is careening out of financial control, with both parents and offspring having no Read More 

The Traders Journal

Investor Seminar Season: Can The Speakers Walk the Talk?

by Gatis Roze

I attend investment seminars as half-monk, half-hit man.  My time is a precious commodity, so if you are a speaker and see me in the audience, be prepared.  My hot button is when speakers show a few elaborate slides, “share” their four favorite tenets to successful investing and then launch directly into their marketing pitch.  They act as if they’ve given you the keys to the kingdom, proving their brilliance and justifying your attention. And those four tenets are invariably the same: The trend is your friend. Cut your Read More 

The Traders Journal

How History Unlocks Deep Insights Within Today's Price and Volume Charts

by Gatis Roze

History matters because markets do indeed repeat themselves.  John Kenneth Galbraith was interviewed in the PBS documentary, The Crash of 1929, and he observed that every   30 years or so we predictably have a major market correction because that seems to be the length of time it takes each generation to forget the lessons of the previous generation. Over decades of trading, I’ve developed a keen understanding of how history gets repeated.  I’ve absorbed the economics and history of the Roaring ‘20s from reading books.  I lived through the late 1980s when Read More 

The Traders Journal

Academics Agree: Asset Allocation is the Only Free Lunch in the Investing Arena

by Gatis Roze

Upfront, it’s important to note that unlike most investors who hear asset allocation and conjure up three asset baskets (stocks, bonds, cash), Tensile Trading presents an exhaustive all-inclusive buffet of 59 different asset classes from which you choose.  Our book also shows to what extent each of these various assets classes is correlated to the S&P 500.   For example, if you buy the Vanguard Total Market Index (VTI), the correlation to the S&P 500 (SPY) is 0.99 — virtually the same risk and performance, so therefore no Read More