The Wealth Code 2.0 Blog

The Passive Indexing Trap

4-25-17 Authored by Lance Roberts via, “The real goal of any investment advisor is not to “beat the index” on the way up, but rather to protect capital on the “way down.” It is capital destruction that leads to poor investment decision making, emotionally based financial mistakes and destruction of financial goals. It is also […]

Opinion: The smart money is record ‘short’ in stocks, and the dumb money is record ‘long’

By Simon Maierhofer Published: Apr 6, 2017 4:53 a.m. ET And that begs the question: Is it time to get out? In the post-2009 bull market in stocks, investors have been stubbornly bearish — to their own detriment. The most recent, and most pronounced, bout of pessimism happened in January and February 2016, when we […]

Insider Selling Hit Six-Year Highs As Retail Investors Rushed Into Stocks

by Tyler Durden Apr 3, 2017 3:19 PM Earlier we showed that when looking at asset returns in the first quarter, there were hardly any underperformers while positive returns were generous across virtuall all asset classes. What drove this outsized performance, which once again left most hedge funds and asset managers seeking to generate alpha […]

Why Robert Shiller Is Worried About The Market

by Tyler Durden Mar 14, 2017 9:33 AM The last time Robert Shiller heard stock-market investors talk like this in 2000, it didn’t end well for the bulls. As Bloomberg reports, [4] Shiller says when markets are as buoyant as they are now, resisting the urge to pile in is hard regardless of what else […]

The World’s Most Deceptive Chart

Mar 6, 2017 8:23 AM Via Lance Roberts of, I received an email last week which I thought was worth discussing. “I just found your site and began reading the backlog of posts on the importance of managing risk and avoiding draw downs. However, the following chart would seem to counter that argument. In the […]

A Look Back At 1999!

Mar 5, 2017 1:39 PM Via, [4] On Friday, I penned: [5]  “The question that must be answered is just how much of the benefit from these fiscal proposals have already been priced in perfection? What happens if tax reform is less than anticipated? Or infrastructure spending is cut from $1 Trillion to $500 […]

This is NOT like the dot-com bubble… it’s much worse, according to this chart

Published: Mar 2, 2017 3:28 p.m. ET By ShawnLanglois This market climate is nothing like we saw during the dot-com hey day. By many measures, it’s actually worse, according to numbers crunched this week by 720 Global’s Michael Lebowitz. “Even though current valuation measures are not as extreme as in 1999, today’s economic underpinnings are […]

Here’s the real reason behind Dow 21,000 (no, it’s not Trump’s speech)

Published: Mar 2, 2017 3:31 a.m. ET As I write this, the Dow Jones Industrial Average DJIA, -0.27%  has surged more than 300 points, vaulting the benchmark index over 21,000 points for the first time. This ferocious rally, a day after President Trump’s speech to Congress, also is reflected in other indices, including the S&P […]

Case Shiller Price per Earnings Ratio Date: Sun, 19 Feb 2017 09:21:33 -0600 (Updated every 10 minutes) Shiller P/E: 29.3 (+ 0.17%) Shiller P/E is 75.4% higher than the historical mean of 16.7 Implied future annual return: -1.6% Historical low: 4.8 Historical high: 44.2 S&P 500: 2351.16 Regular P/E: 26 (historical mean: ) Prof. Robert Shiller of Yale University invented […]

What’s Wrong With This Picture?

by Tyler Durden Feb 18, 2017 5:50 PM Turn on any mainstream business channel (or President Trump’s tweet stream) and you will be told how ‘awesome’ everything is going to be… look at stocks, look at sentiment surveys, look at consumer confidence, look at small business optimism. There is two small problems with all of this… […]