Portfolio Construction
Specialty

Specialty

SpecialtyA specialty is something where substitutes cannot be easily found, at a given price.For me, those specialties are, in part:Early retirement made possible because married couple in Florida has the resources to withdraw from post-tax funds, and simultaneously...

Manifesto Rule #3

Manifesto Rule #3

Which Stone Is The Key?Jae’s Manifesto Rule #3: Don’t Confuse Commodity With SpecialtyThe reality is that I spend most of my time thinking: “how can I explain it so that a common-sense person can understand it?” The problem I have created for myself is that people...

Manifesto Rule #3

Wildcard Weekend

With Friends Like This…A longtime friend sent me this picture yesterday. I barely remembered, thanks for that (not).Imitation is the Sincerest Form As we point out in our main story, easy money policies from global central banks pushed international government debt to...

Manifesto Rule #3

Baby, It’s Cold Outside

The Thin Line Between Snow Showers and a BlizzardIt would be unreasonable and impossible to download my entire information set regarding financial markets. I have seen a lot, more than enough for multiple lifetimes, I can easily say this. I literally had a second-row...

Manifesto Rule #3

Don’t Do What Michigan Did

It May Not Have Mattered At AllMichigan Got Their Chance…and DeferredThe likelihood of Michigan winning was small, there is almost no chance that the UM coaching staff didn’t realize this. If they played 100 times, how many would Michigan actually win in a straight-up...

Manifesto Rule #3

The Homestretch

The Rolling Past 12 MonthsClear what has happened: Russell 2000 (small caps) outperformed by a wide margin (a full year’s worth in 3 months) through March and then nada for 7 months in a row.If you observed this, and understand the idea of mean reversion, what to do...