Zolio Market Commentary

How Retail and Professional Differ: The Mandate

How Retail and Professional Differ: The Mandate

| April 21, 2014

Have you ever read the prospectus for an actively managed fund? While dry reading for most, they are engaging for financial professionals; not only does the prospectus detail the objectives and strategies of a fund, but they also act as marketing tools that emphasize the unique value of the fund for investors which inevitably points […]

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How Analyzing Growth and Valuation Can Explain Google and Chipotle

How Analyzing Growth and Valuation Can Explain Google and Chipotle

| April 17, 2014

Two growth stocks reported in the last two days: Google (GOOG) and Chipotle (CMG), with the former falling and the latter rising. Other than being growth names, these companies have little in common; one is tech, the other fast casual dining. One has been a multi-billion dollar giant for well over a decade and is […]

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Why Coke and Johnson and Johnson’s Good News is Bad for the Market

Why Coke and Johnson and Johnson’s Good News is Bad for the Market

| April 15, 2014

Tuesday morning was one of those classic reversal days—beginning with a modest bull run that turned south by 11 a.m. and was accompanied with a spike in volatility. Tuesday morning was busy for journalists as well as traders; headlines included news of Russia troops advancing into Ukrainian territory beyond Crimea, Janet Yellen hinted at higher […]

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The Psychology of Reactionary Allocations

The Psychology of Reactionary Allocations

| April 11, 2014

Last year was an easy year to make money in stocks; when markets shoot straight up, it becomes trendy amongst retail investors to tout index investing. When stocks are up 30% in one year, who would argue that stock picking and sophisticated methods of allocating portfolios to asset classes, categories, and verticals can beat just […]

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The Bad News, Good News Paradox and Momentum Stocks

The Bad News, Good News Paradox and Momentum Stocks

| April 10, 2014

In 2013 a consistent trend of bad macroeconomic news causing stocks to rise and good news causing them to fall could be seen marketwide throughout most of the year. The reason for this was simple: bad news led short-term traders to assume the Federal Reserve would continue its QE policy of expanding the monetary base […]

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The Rise and Fall of Unemployment, Equities

The Rise and Fall of Unemployment, Equities

| April 4, 2014

This morning, the Bureau of Labor Statistics released its monthly payroll data, which has caused stocks and bond yields to fall. The disappointment was not limited to the headline number (192,000 added jobs versus 200,000 expected), but that number itself was a disappointment for a variety of reasons. Let’s take a look at how this […]

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Using Mortgage Data to Gauge Consumer Purchasing Behavior

Using Mortgage Data to Gauge Consumer Purchasing Behavior

| April 1, 2014

The U.S. economy depends on the consumer. This has been the case for nearly a century now, as post-WWII development in the country relied on a middle class nuclear family to purchase consumer goods that would build companies and profits. This system was extremely effective, and remains the predominant force in American trade. As a […]

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