Zolio Market Commentary

Bullish on Credit Cards: The Transaction Portfolio

Bullish on Credit Cards: The Transaction Portfolio

| October 30, 2014

At the depths of the recession, fears of a knocked out American consumer kept valuations low and investors scared; to this day, inflows from retail investors remain limited and beyond historical expectations. This has impacted several sectors, but it has not hit technology, which always attracts hot money seeking growth. Facebook (FB), Google (GOOG), LinkedIn […]

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The Emergence of Alibaba’s S-Curve

The Emergence of Alibaba’s S-Curve

| October 29, 2014

Alibaba’s (BABA) IPO was decent, respectful, but nothing spectacular. Recent strong IPOs like GoPro (GPRO) and Twitter (TWTR) are counterpoints; both started strong and quickly rose in the first few weeks of trading. BABA’s story is different. A decent pop meant post-IPO investors got shares at about 45% of the IPO price, but those retail […]

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Other Metrics and Pandora’s Steep Dive: When Financials Aren’t Enough

Other Metrics and Pandora’s Steep Dive: When Financials Aren’t Enough

| October 27, 2014

Last Thursday, Pandora (P) announced revenue that was roughly in-line with expectations and non-GAAP EPS that was a small beat. Neither was enough to keep the stock positive, as it fell over 15% in intraday trading on Friday. At the same time, neither revenue nor EPS are really why the stock is falling or why […]

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Apple’s Results by the Numbers

Apple’s Results by the Numbers

| October 21, 2014

Apple reported strong earnings on Monday afternoon, helping the stock to rise modestly after hours and causing some analysts to raise their price targets for the company. To profit in a highly efficient market, investors need to do more than read the headline and agree that a company had a good or bad quarter. We […]

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Why the Bear Market Turned, and Turned Again

Why the Bear Market Turned, and Turned Again

| October 20, 2014

Last week saw some turmoil and a sharp spike in the VIX, which led to some rare backwardation in VIX short-term futures (VXX, UVXY). The increase in volatility and sudden decline in stocks, including a fall below the 200-day DMA which some traders saw as an indication of a full-blow bear market, was attributed to […]

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Market Corrections and P/E Ratios: How it Helps Growth Investors

Market Corrections and P/E Ratios: How it Helps Growth Investors

| October 14, 2014

In the popular press, the recent decline in equities has become an opportunity to stoke fear and anxiety. Whether it’s saying that “This is the most dangerous stock market since 2008” or pointing to ebola, crashing oil prices, income inequality, or some other cause of the market collapse, this is a great time for financial […]

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Screening High Beta Stocks and Tracking Performance

Screening High Beta Stocks and Tracking Performance

| October 9, 2014

Hedge funds, originally called “hedged funds”, had a very simple premise: find stocks to invest in, find stocks to bet against, and put money on both. If the market as a whole goes up or down, you should be sufficiently hedged against major losses, over time outperforming anyone who just went long an index fund. […]

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