Markets Are Discounting Machines.Financial markets look ahead and discount what humans often can’t see or even imagine. 2020 may go down as one of the best examples on record of such vision. The “risk/reward” of investing is always greatest when fear is highest because valuation is cheapest.2020 was textbook in that regard with March offering…...
We’re back, and we hope that everyone is prepared for another adventurous year in the markets. As we enter 2021, we shouldn’t forget the lessons of the past. With this in mind, we encourage Finom Group members to review, when time permits and as a refresher, more recent Research Reports as they can provide useful…...
Please click the following link to be directed to our latest YouTube video where we discuss our concluding thoughts on the 2020 bull market. In order for drawdowns to not become realized losses, sometimes we also have to elongate our time frame. The longer our time frame, the more likely we enable realized profits and…...
Don’t be late. Life often throws us curve balls and when it does,all we can do is adjust our swing. In this regard,2020 may go down as the year of the curve ball. The world didn’t knock everything out of the park, but it did show great resilience and human spirit. Sometimes preparation is the…...
OVERVIEW Following on our series that was produced this year called “The Book of Great,” which discussed 10 separate dynamics that developed in 2020, we believe 2021 represents a year of multiple transitions—“The Gateway to the New Frontier.” First and foremost, we believe this transition develops away from peak uncertainty to a more certain, albeit…...
In this week’s video special report we discuss the environment surrounding the February-March 2020 bear market; the fastest bear market in history (17 days). Please click the following video link which discusses all the materials below. While many, if not most, are speculating in perpetuity over market tops, they miss the opportunity to formulate a…...
12 month price momentum is a powerful driver of flows and performance. Over time, price momentum strategies aren’t mean reverting, one reason they are so popular. Over the past decade more strategies have adopted momentum as a key input to their processes so momentum begets momentum. Components of price momentum leaders/laggards change periodically. As recessions…...
As we wrap-up our third year of operations at Finom Group, we extend our gratitude to each and every member/participant. 2020 has been one of the more difficult years for our country, let alone investors who chose to battle the peak-trough-peak in the markets. Finom Group sincerely hopes that our weekly Research Reports, State of…...
Equities are facing one of the best backdrops for sustained gains next year. After a prolonged period of elevated risks (global trade war, COVID-19 pandemic, US election uncertainty, etc.), the outlook is clearing with the business cycle expanding and risks diminishing. We expect a “market nirvana” scenario for equities with the melt-up continuing into 1H21,…...
Market and VolatilityCommentary Equity Macro and Quantitative Outlook for 2021 Our outlook for 2021 is positive for equities and more broadly for risky assets (see Global Asset Allocation). We expect markets to be driven by recovery from the COVID-19 crisis at the back of highly effective vaccines and continued extraordinary monetary and fiscal support. Given…...
