Investment Research from John Rothe, CMT

Understanding and managing volatility is essential to minimize risk and optimize portfolios. Volatility, as measured by the VIX (Volatility Index), can provide insights into market sentiment. Changes in volatility can serve as warning signs for potential trend reversals in individual stocks as well. 

When constructing an investment model, risk management is a critical aspect of portfolio construction and performance evaluation.

While traditional measures like standard deviation and variance have been a favorite risk gauge by many investors, the Ulcer Index (UI) — a less conventional but highly insightful metric — offers a unique perspective by focusing specifically on downside risk.

Is Gold a Good Hedge Against Inflation? Gold has historically been viewed as a reliable store of value and a hedge against inflation. Throughout time, investors have turned to gold during economic upheavals, political unrest, and times of inflation. But how accurate is this belief? Is gold genuinely a good inflation hedge?

Examination of various types of sector rotation strategies, from economic cycle-based to event-driven. Detailed analysis of academic research, providing evidence-based insights into the effectiveness of sector rotation.

The Problem with Modern Portfolio Theory: The world of finance is replete with theories and models. Yet, few concepts have left as indelible a mark as Modern Portfolio Theory (MPT). Proposed by Harry Markowitz in his 1952 paper, “Portfolio Selection,” MPT has been both a guiding light and a point of contention among investors for decades.

The 10-Year vs. 2-Year Treasury Bond Spread, known as the “10-2 spread”, has emerged as a focal point for policymakers, investors, and market watchers. But what makes this spread so significant? Can it really be a trusted herald of impending recessions?

If you’re looking to unlock valuable insights into market trends and make more informed trading decisions, then understanding Fibonacci retracement levels is essential. Originating from the genius mind of Leonardo of Pisa, these levels hold a special place in the world of technical analysis.

The latest job report shows a notable slowdown in U.S. job growth, with employers adding 187,000 jobs in July, slightly below economists’ forecast of 200,000 positions. However, there’s no need to worry as this indicates a shift towards a more sustainable pace, which still exceeds the pre-pandemic monthly average. Additionally, the July figure is slightly higher than June’s revised payroll gain of 185,000. In this article, we’ll explore what this means for the economy and the implications for investment decisions.

The Big Mac Index is an intriguing economic indicator that offers a unique perspective on the world’s currencies and purchasing power parity (PPP). Created by The Economist in 1986, it has since gained significant recognition as a tool for illustrating currency value comparisons.