Sam Ro

2 weeks ago | benzinga.com | Sam Ro

Policymakers, politicians, business leaders, and investors all use economic data. So, most people agree that any data being cited should be high quality. But everyone relies on data differently depending on their goals and interests, which means the implications of data quality varies depending on who's using it. Today, I'm going to provide some updates on deteriorating data quality and share some thoughts from the stock market investor's perspective.

2 weeks ago | aol.com | Sam Ro

A version of this post first appeared on TKer.coPolicymakers, politicians, business leaders, and investors all use economic data. So, most people agree that any data being cited should be high quality. But everyone relies on data differently depending on their goals and interests, which means the implications of data quality varies depending on who’s using it. Today, I’m going to provide some updates on deteriorating data quality and share some thoughts from the stock market investor’s perspective.

3 weeks ago | tker.co | Sam Ro

People have been talking about the โ€œTACOโ€ trade, a concept coined by the Financial Timesโ€™ Robert Armstrong. Short for โ€œTrump Always Chickens Out,โ€ TACO explains how markets fall after President Trump announces unfavorable economic policies and then rally after he relents on those policies. The wording is cheeky. And unsurprisingly, it elicited an unfavorable response from Trump. But the basic concept isnโ€™t new.

3 weeks ago | tker.co | Sam Ro

When interest rates rise, it’s tempting to jump to the conclusion that the stock market should suffer. After all, higher rates mean higher financing costs. This is bad because: 1) customers will have a harder time financing purchases, which is a headwind for sales, and 2) higher interest expenses are a negative for earnings. On a slightly wonkier note, higher interest rates cause the as the present value of future cash flows shrinks. That said, the full story is nuanced.

3 weeks ago | benzinga.com | Sam Ro

We've discussed exhaustively how difficult it is to pick stocks that outperform the market. But let's assume you were able to identify these winning stocks. Is it smooth sailing from there as you smoke the competition? No. Far from it. It turns out that the stocks offering the best returns for investors historically experienced incredibly painful max drawdowns (i.e. percentage declines from a price peak to a trough).