In my last Livewire post, I commented that The Vega Fund would be looking closely at economic data over the coming months to determine whether it should remain long (and weather out what I believe is a temporary correction) or whether going short would be a viable option. Show More
Statistically speaking a 10 to 20 per cent correction should occur about once a year (averaged out over time). Hence to see one shouldn’t be such a great surprise...but when it occurs, how do we handle it? Show More
With markets pulling back over the past few weeks, many investors are wondering whether this is the beginnings of a bear market. Today I wanted to discuss these trends and how I’d approach them. Show More
Today I wanted to provide some depth on how we use VIX products to manage risk in The Vega Fund portfolio. As far as we know, we’re the first fund in Australia to hedge in this particular fashion and hence some clarity is warranted. It’s not the only tool in... Show More
As Peter Lynch once famously said “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets”. Today I’m going to discuss some ways in which investors can protect their portfolios from downside risk. Show More
The Dow Jones’ 2-day, 1,800-point correction, left many investors scrambling for ideas on Monday and Tuesday. By 10:30am Wednesday, many stocks had recovered close to their previous highs. While most experienced investors know that corrections and crashes can offer great buying opportunities, it’s easy to be caught off guard by... Show More
If you’re a know-something investor, then you’ve likely been expecting or hoping for a correction with increased volatility for a while. Corrections are normal, what’s been abnormal is the 59% increase in the S&P500 from the low of 1,810 in February 2016 without a 5% correction. Clearly this blissful period... Show More
We look at markets in a number of ways combining fundamentals, seasonality, statistics and technical analysis - we never understand somebody that does not use all the information at their fingertips! Firstly, over the last 2 years we have regularly referred to the monthly US S&P500 chart illustrating the "5... Show More
Satyajit Das, author of “A Banquet of Consequences,” sees a crisis brewing in financial markets. "There's a lot of kindling, and people are walking around flicking lighters." Das says there are three basic ingredients required to cook up a crisis. 1) Overvaluation. "You can take PE ratios, you can look... Show More
This is not a time for hand holding. This post is for those, like us, excited about the falls we are seeing on global markets. It's for those, like us, who use these opportunities to invest. It's time to get busy and here's how to go about it: Show More