Zolio Market Commentary

GDP Expansion, S&P 2000, and Macro Bets

GDP Expansion, S&P 2000, and Macro Bets

| August 28, 2014

Portfolio allocations depend on fundamental value and macroeconomic conditions. While financial analysis can help analysts identify unique and undervalued assets from the bottom up, portfolio managers need to be aware of macroeconomic conditions that can impact investments from the top down. As we sit between earnings seasons, many analysts are looking at macroeconomic indicators to […]

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How the Passive Investing Trend Pressures Money Managers

How the Passive Investing Trend Pressures Money Managers

| August 26, 2014

Professional money management involves two sides. On the one side, you have the need to provide risk-adjusted returns to clients whose objectives are diverse: growth, asset protection, and risk management being top of the list. On the other side, there is the need to convince investors of the value of your active investing acumen. Whether […]

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Sears Holdings and the Dangers of Distressed Equity

Sears Holdings and the Dangers of Distressed Equity

| August 22, 2014

In 2010, Sears Holdings (SHLD) soared over 250% from its low point a little over a year ago on speculation that a turnaround story was going to help the aging department store bounce back along the economy. Since then the stock has remained volatile but steadily falling. Today, with another quarterly loss and shrinking revenues, […]

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Top-Line Growth for Retailers and the Macro Picture

Top-Line Growth for Retailers and the Macro Picture

| August 20, 2014

2013 was a horrible year for many fashion retailers, despite the great year for stocks as a whole. For teen-focused brands like the Gap (GPS), American Apparel (APP), Aeropostale (ARO), Ambercrombie and Fitch (ANF) and American Eagle Outfitters (AEO), it was a year of falling sales and a contracting market. In the last couple of […]

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The Trend Lasts Until It Stops: Why Daytrading is So Hard

The Trend Lasts Until It Stops: Why Daytrading is So Hard

| August 19, 2014

We have known for a long time that daytraders do not make money. The select few that do are an exception and are handsomely rewarded for their unique talent. As for the rest of us—daytrading is full of risks and opportunities to lose money. There are theoretical reasons for this, and it only takes a […]

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Why the S&P 500 Saw Choppy Action Friday Morning

Why the S&P 500 Saw Choppy Action Friday Morning

| August 8, 2014

Friday morning trading demonstrated a great deal of movement within a tight range, with the S&P 500 (SPY) remaining up for the day but oscillating between 191.73 and 191.08. Many analysts and daytraders were expecting a bearish day; for instance, on the social site Stocktwits.com, bearish sentiment continued to grew from August 1st onwards. The […]

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Why Coach Rose on Declining Revenue and Kors Fell on Growing Revenue

Why Coach Rose on Declining Revenue and Kors Fell on Growing Revenue

| August 5, 2014

Novice investors often use a simple thought process when it comes to buying stocks. The logic goes like this: 1.  A new company has entered a market and is stealing market share from others because buyers prefer their products. 2.  To capitalize on this new company’s growth, I should buy their shares. This logic works […]

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