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Following the May CPI release on June 12, 2024, here is an inflation update. The significance of the figures and their influence on Fed policy are discussed. Economists concede that inflation means higher prices. In our opinion, the most important development ...

This long-short factor ETF rotation strategy has zero beta and could provide excellent diversification potential.

Market statistics of all kinds captivate the financial social media and blogosphere, but one should carefully scrutinize claims. A better maxim is to believe only the statistics you can verify yourself, although this is not always possible. In my 14 years ...

In the last two and a half years, the equal-weight S&P 500 index performance has mirrored that of the Russell 2000 index. Due to excessive concentration, the S&P 500 index has become the new small-cap index. The chart below shows how ...

Permabears never disappear; they are always active, even when momentum is strong and the market is at all-time highs. But the behavior of permabulls is interesting, to say the least. I am convinced that being a permabear is not so much ...

Marketing frequently serves as the driving force behind efforts to promote one trading style over another. Mean reversion and trend following are complementary trading styles, and choosing one over the other is a false dichotomy. Trend-following gets rid of losing trades ...

We offer nine end-of-day trading strategies for all seasons: mean-reversion, trend-following, seasonality, and volatility. A free bonus strategy is included. The list of strategies can be found here. Below are backtests of the nine strategies. The last date for the backtests ...

The macroeconomic analysis of capital markets has limited effectiveness, except for commodity trends, where there is reasonably good potential. Investors could be better off following simple technical indicators when the objective is to minimize pain during bear markets. Macroeconomic analysis is ...

Since the current version of artificial intelligence is based on training on content published over the years, it is only natural that the misconceptions in finance will compound. The fact that marketing professionals have produced the majority of content is one ...

On our blog, we have a new page with daily futures trend-following signal updates. Access to this page is currently free. We use continuous, back-adjusted data for 23 futures contracts. The trend-following strategy is based on our proprietary PSI5 algorithm in ...