Yesterday the Dow Jones Industrial Average celebrated its 119th birthday! Charles Dow and Edward Jones created the index, and it was first calculated on May 26, 1896. While the Dow Jones Industrial Average is certainly the most discussed US market index, you may be...
Stock Market Games Encourage Poor Behavior
Happy Stock Market Games, and may the odds be ever in your favor! If you took an investing class in high school or college, you likely played some variation of a stock market game. You know, that game where teams try to obtain the best investment returns over a...
Point and Figure Update: March 23, 2015
We have two quick updates on the S&P 500 and NASDAQ Composite indices today. Both are sending encouraging signals on their point and figure charts. They seem to be setting up for one of two potential patterns: the bullish catapult or the shakeout. Both the bullish...
Risk Tolerance Shouldn’t Change with the Market
When it comes to investing, risk tolerance is the amount of risk you're willing to take as an investor. We all have to take some degree of risk to enjoy any type of return. Different investors are comfortable with different levels of risk taking. Some advisors and...
Why We Aren’t in the Prediction Business
Earlier this week we were supposed to have a storm of historic proportions. Here in Monmouth County, NJ the experts were calling for 20-24 inches of snow. People flooded the grocery stores for milk, bread and other essentials. As you're likely well aware, the...
Average Returns Rarely Occur
Wouldn't it be nice to live somewhere that has an average temperature of 75 degrees? Not too hot, not too cold, just right. Here's the problem: Not everywhere with an average temperature of 75 degrees is desirable year round. Hawaii has an average temperature in the...
It’s Often About What You Don’t Own
Our friends at Dorsey Wright and Associates have always maintained that, "It's often about what you don't own", when it comes to returns. Successful investing relies on your ability to select favorable investments, but it also hinges on avoiding poor ones. Relative...
Even in Good Years the Market Pulls Back
Keeping things in perspective is important. Investors fall victim to cognitive biases sometimes, but we can do our best to avoid that type of behavior. With the strong markets seen in 2012, 2013, and 2014, investors are primed for recency bias to cloud their...
Even the S&P 500 Changes Holdings
According to many market experts, investors should buy and hold always and forever, right? If you've been told that before you might be surprised to learn that even the S&P 500 changes its holdings every so often. In fact, according to a recent Business Insider...
Turn of Year Stock Market Seasonality Model
Last week, Tom and I discussed stock market seasonality on our weekly podcast, which you can find here: https://mullooly.net/stock-market-seasonality/7785 We've found that stock market seasonality studies are extremely interesting and useful, however they're no...




