The Stuff You Cannot Miss

I just wanted to wrap the week up with a few links because I’ve been reading so much great stuff and I didn’t want you to miss any of these… Nick Maggiulli went long-form on why it’s so easy for people to be tricked by anecdotes and information derived from small sample size research: It’s […]

How Much is a CEO Worth?

[embedded content] Be sure to subscribe to our channel so you never miss an update Welcome to the latest edition of What Are Your Thoughts – Michael Batnick and Downtown Josh Brown break down the biggest topics of the moment. On this episode: * JP Morgan calls out permabears. * Should investors be concerned about […]

Below-Average Bull Market

My Chart o’ the Day comes from LPL’s Ryan Detrick, who notes that: Many consider this bull market the greatest ever, given it has incredibly lasted more than 10 years. But in terms of magnitude, many would be surprised to hear that the 357% gain during this bull market is still beneath the record 417% […]

Are Stock Buybacks Driving Wealth Inequality?

[embedded content] It’s not lost on me that we’re posting this on a day where the S&P 500 trades above 3100 for the first time… 15,000 people have subscribed to our YouTube channel – get on board here!  Ben Hunt joins Michael Batnick and Downtown Josh Brown at The Compound to explain what he’s so […]

Is Bitcoin a Macro Asset?

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this […]

Mindy Diamond and me on breaking away, building a firm

If you’re not aware of Mindy Diamond, then you probably don’t read a lot of of trade magazines for the financial advisory industry, because she’s one of the most oft-quoted experts in the field of advisor recruiting. Mindy has been placing advisors and helping firms staff up for 21 years, as her official bio puts […]

Ritholtz Wealth is Now Hiring For These Positions

It’s Veterans Day, stocks are trading but the banks are closed… Wanted to let you know that we are now interviewing candidates for the following positions at Ritholtz Wealth Management: Chief Compliance Officer: Candidate will work from our New York City headquarters on Bryant Park. We are looking for candidates with a minimum of five […]

The Four Most Important Market Indicators

[embedded content] Be sure to subscribe to our channel so you never miss an update! Josh here – I really enjoyed talking with former JPMorgan strategist and the founder of Fundstrat Research about how he uses the evidence to understand what’s happening in the markets. Tom cites four indicators he uses to explain current trends […]

Secrets of the Greatest Hedge Fund of All Time

[embedded content] Be sure to subscribe to our channel so you never miss an update Josh here – we had Greg Zuckerman of the Wall Street Journal up at the Compound to talk about his new book, The Man Who Solved the Market – the first ever deep dive into Jim Simons and his legendary […]

Manager of Managers

‘Punch or May Day’ by Benjamin Robert Hayden, 1829 Can a financial advisor manage a portfolio of active funds and consistently select outperforming managers for her clients in advance? It’s definitely possible, but highly unlikely. Trillions of dollars have come out of actively managed funds and shifted into systematic strategies, rules based strategies and index […]

This Week on TRB

One of the best authors in finance, the Wall Street Journal’s Greg Zuckerman, came thru to talk about his forthcoming book, The Man Who Solved the Market – the first ever tome about Renaissance Technologies, the most successful hedge fund in history. Preorder your copy now, comes out this week! “You gotta remember to be […]

Dan Rasmussen: The Private Equity Boom is Risk for Main Street

[embedded content] Private equity has become the asset allocator’s asset class of choice. A recent survey of institutional investors found that 49% expect private equity to outperform the public equity market by a whopping 2% per year or more. We spoke with Dan Rasmussen of Verdad Capital about why he thinks the experts have completely […]

Why The Street Fears Elizabeth Warren as a Frontrunner

This past summer I wrote about Senator Elizabeth Warren’s plan to “transform” financial services and “rein in Wall Street”, referring to her policies as “banking sector napalm.” If she had her way, the trillion-dollar private equity segment within finance would be burnt to a crisp. Her policy ideas for spreading the risk back toward those […]

Asset allocation for people in their twenties

[embedded content] Josh here – I had the pleasure of appearing on the Business Casual podcast this week, with the fabulous Kinsey Grant. Business Casual is a new podcast series from Morning Brew, one of the hottest up and coming financial media companies, focused on the college aged audience and young investors. You can listen […]

Prestige Worldwide

So this is interesting… Jon Krinsky ran some charts over the weekend for Baycrest showing the big moves happening in global stock markets. Europe, if it finally does bust through to the upside, will be coming out of a two year base and, pulling the chart back a bit further, a TWENTY YEAR base. Technicians […]

Why the Stock Market Rallies Into Year End

[embedded content] Be sure to subscribe to our channel so you never miss an update The S&P 500 came into October this year up double digits. It has done so on 42 occasions since 1926. That’s almost 50% of the time. Of those 42 times, in 35 cases the market went up through the end […]

Bond Market is Trick Or Treating at the Fed

WSJ: Federal-funds futures used by traders to wager on monetary policy show markets pricing in a 94% chance of a cut this week, CME Group data show. Peter Boockvar: Putting aside what I think the Fed should do this week (nothing), I can’t remember one time that the Fed stood only on its own thoughts and not […]

How to Build a Recession-Proof Portfolio

[embedded content] Subscribe to The Compound now! We created the FAQ series to help us communicate some of the key tenets of our investment philosophy in a very easy to understand format for investors at all levels of experience and wealth. Recessions are going to be a part of the landscape for as long as […]

Private Markets Look Like The Dumb Money Now: What Are Your Thoughts?

[embedded content] Welcome to the latest edition of What Are Your Thoughts – Michael Batnick and Downtown Josh Brown break down the biggest topics of the moment. On this episode: * Private markets used to be thought of as “the smart money” while public markets were for retail shleps – but this time around, it’s […]

Global Stocks Starting to Inflect Higher

My Chart o’ the Day comes from the incredibly insightful Ari Wald at Oppenheimer, who is considering the possibility that, globally, stocks are acting better than current sentiment about the global economy might imply. If you’re more focused on the headlines than on price itself, you may have been missing this trend. Ari explains the […]

How Narrative Economics shape our world – Barry talks with Robert Shiller

I listened Barry’s new interview of Professor Robert Shiller for Bloomberg Radio’s Masters In Business this week. It was really enjoyable and informative – and a reminder that market history has very few firsts, most of what we live through has already happened before, in some version or another. Shiller’s new book, Narrative Economics, is […]

Headed to the 6ix

On my way to Toronto this morning after sleeping in my own bed last night after an amazing few days in Nashville. I spoke to the FPA of Middle Tennessee yesterday about the key to winning the future in the US wealth management market, and to talk about some of the things we’re doing for […]

Barry and Michael on the Endowment Model circa 2019 and beyond

[embedded content] My partners Barry and Michael discussed Barry’s recent Bloomberg column looking at the returns and asset allocation decisions at the Ivy League endowment funds. Recent data suggests endowments are adding to their private market investments at a high rate, presumably playing the same old performance chase that everyone else is susceptible to. Michael […]

Here’s how the brokers will make money now that trading is free

[embedded content] My friend Dave Nadig, who runs ETF.com, had some really interesting takes on the recent wave of commission-free trading announcements from Schwab, TD and Fidelity – and what it all might mean for both the brokers and their customers. Barry and Dave talked about this live on The Compound. Make sure you’re subscribed […]

BAML’s Trade War Tracker

Ethan Harris is the global economist at Bank of America Merrill Lynch. Following the course of the trade war with China and all of the associated developments has become something of a necessity for market participants, even if they’ve concluded (as I have) that no one has an edge on what will happen next (or […]

“My advice never changes.”

Jason Zweig once said he’s been writing the same column for 20 years and getting away with it because there are enough new and different things to say about the various ways in which investors do themselves harm. It literally never gets old. “My job is to write the exact same thing between 50 and […]

Banks Can’t Forecast Interest Rates Either: What Are Your Thoughts?

[embedded content] Be sure to subscribe to our channel so you never miss an update Welcome to the latest edition of What Are Your Thoughts – Michael Batnick and Downtown Josh Brown break down the biggest topics of the moment. On this episode: * Get your story straight – are there too many IPOs coming out […]

How You Can Attend a Live Taping of the Halftime Report in Arlington, VA

On Friday, November 8th, CNBC’s the Halftime Report will be taping our annual Veterans Day episode live from the Women’s Memorial at Arlington National Cemetery in Virginia. We’re all flying in to be at this special location to recognize the women who’ve served our country in wartime and in peace. The Women In Military Service […]

Recession is Coming, “Code Red” Yield Curve Indicator Seals the Deal

[embedded content] Campbell Harvey is a Professor at Duke University and a partner as Research Affiliates. He sat down with Michael Batnick and Josh Brown of Ritholtz Wealth Management to discuss the meaning of the inverted yield curve indicator, which he discovered in 1986 while working on a dissertation. Campbell cites the fact that 7 […]

Kansas City BBQ Night!

I’m headed out to Kansas City this week, a place I have never been to but have heard lots of good things about. I’ll be addressing the Financial Planning Association of Greater Kansas City with a brand new presentation I’m doing for advisor groups throughout the fall. This is its maiden voyage, so, fingers crossed. […]

Happy 20th Birthday Investopedia – Here’s why the site rocks

[embedded content] Josh here – I helped Investopedia celebrate its 20th birthday and had a chat with advisor Doug Boneparth and Caleb Silver, who runs the website. For two decades, investors and traders have been searching for terms, definitions and understanding as they seek to better themselves and advance their careers. In the course of […]

Dangerous Shortage of Idiots Threatens Economy!

I came across this in my Instagram feed yesterday and I had two thoughts… Top. pic.twitter.com/VO6Ksjnjs5 — Downtown Josh Brown (@ReformedBroker) October 2, 2019 The first thing is, awww man, I love Shark Tank. My kids do too. Why does this dude have to be doing this? And then I thought about how if a […]

This isn’t exactly a moon landing…

Some news today rocked the brokerage stocks as Charles Schwab announced the launch of commission-free trading for all stocks, ETFs and options, for all customers, beginning next week. TD Ameritrade, ETrade and Schwab itself all got hammered on the stock market – down between 9 and 23% at last glance. I did a quick thing […]

Congraduritos!

Peter Boockvar: The September ISM manufacturing index fell further into contraction at 47.8 vs 49.1 in August and below the estimate of exactly 50. That is the weakest print since June 2009. New orders were little changed but still below 50 at 47.3… The ISM said simply and obviously, “Comments from the panel reflect a […]

Building the Bloomberg for Sports Betting

[embedded content] Patrick Keane, CEO of The Action Network, joins Josh Brown and Michael Batnick at The Compound to discuss the future of sports betting and how it compares to trading. Check out the Action Network here for more about their services and research. Be sure to subscribe to our channel so you never miss […]

Most Emerging Markets Indexes are Often China Funds in Disguise

On Friday, global stock markets suddenly began to fall as Bloomberg News pressed publish on a report that the White House was considering an escalation in the trade war with China. According to Bloomberg, there was a proposal being floated to bar US citizens from investing in Chinese stocks or companies. Immediately, the NYSE and […]

One Thing Making Me Happy Right Now

Count your blessings is something older people feel the need to remind younger people of, and, of course, those younger people don’t listen. I don’t think of myself as older or younger, but I’m coming around to the idea of smelling the roses from time to time… This has been one of the worst weeks […]

How Will Impeachment Affect The Stock Market?

[embedded content] Be sure to subscribe to our channel so you never miss an update House Majority Leader Nancy Pelosi announced the beginning of formal impeachment proceedings of President Trump. As investors, it’s important to remember that we don’t have a lot of history to go by in terms of what impeachment might mean for […]

Immune to your consultations

And these children that you spit onAs they try to change their worldsAre immune to your consultationsThey’re quite aware of what they’re goin’ through – Bowie We held a coming out party for the next generation of financial advisors. It was called Wealth/Stack and for three glorious days, the most energetic, enthusiastic and dedicated young […]

Green New Deal is Inevitable

It’s hard to scare the youth out of economic policies that will jeopardize the 401(k)s of their parents or even the prospects for their own employment. The main reason is that they’re even more afraid that they might not have an inhabitable planet to live on. Survival has a way of cutting through the bullshit. […]

How to invest a lump sum

[embedded content] Subscribe to The Compound here, it’s easy and you’ll never miss a new episode! Read Nick’s post here: The cost of waiting (Of Dollars and Data)

What Are Your Thoughts: Is Anyone Really “Middle Class”?

[embedded content] Never miss an episode, subscribe here! On a new edition of What Are Your Thoughts?, Michael Batnick and Josh Brown discuss: * The Repo Rate mini-panic * Are we ready for the Daniel Jones Era? * Does it really take $350,000 a year to live in cities? * Standup comics up in arms […]

Do “Insurance Cuts” Actually Work?

Scott Minerd (Guggenheim) weighs in on whether or not the “insurance cuts” the Federal Reserve is in the process of executing have any real efficacy historically. He finds that the usage of rate cuts during the late stages of an expansion have a mixed record – sometimes they’ve been able to put off a recession […]

Did negative-yielding debt peak?

My Chart o’ the Day comes from LPL Research chief strategist John Lynch and it looks at the phenomenon of negative-yielding debt. Lynch notes that “Unfortunately, the global search for yield has now morphed into a scenario in which fixed income investors, or lenders, attempt to ‘potentially lose less’ rather than ‘earn slightly more’ than […]

I thought “price distortion” was an opportunity

Larry Swedroe comes around swinging a sledgehammer at absurd claims that index funds are distorting the markets – if this is the case, then, if anything, selecting the mis-priced securities ought to be a field day for investors who believe they can do so. Swedroe offers up the only argument against “passive distortion” that really […]

Just tell me what the consumer is up to, skip the rest

If you’ve spent the last ten years fussing over all of the economic reports related to heavy industry and commodity costs and other dirty data points, you probably feel like you’ve been running in circles, caught up in a wild goose chase of oscillations and obfuscations that’s brought you no closer to understanding the twists […]

Animal Spirits video coming to The Compound!

[embedded content] We’ve built the foundation for The Compound YouTube channel over the last year or so and now we’re on the verge of shattering through the 10,000 subscriber mark. We love having this outlet as a place to discuss the investment research we’re doing and to chat with friends of ours and experts we […]