Golf and What It Can Teach Us About Investing for Retirement
“A good golfer has the determination to win and the patience to wait for the breaks.” – Gary Player
The Few vs The Many
In the midst of recession fears, a banking crisis, and historically high interest rates, the S&P 500 is up 7% YTD. Meanwhile the corresponding equal weighted index of the same 500 companies is roughly flat. What is driving this intra-index divergence, is it sustainable, and where could we go from here?
Let’s Make a Deal
Investing and game theory have a lot in common, and one TV program that demonstrates the intersection between the two is “Let’s Make a Deal.”
What Happened to Silicon Valley Bank?
The failure of Silicon Valley Bank was caused by a run on the bank. The company was not, at least until clients began rushing for the exits, remotely insolvent. But banking is an enterprise that relies as much on confidence as it does liquidity — and if that runs out, the game is over.
Forecasting, From Simple to Complex
Linear regression is a simple statistical method most of us are familiar with if we have ever taken an introductory course in statistics. Linear regression is used to model the relationship between a dependent variable and an independent variable. Suppose you are studying the relationship between the number of hours studied (independent variable) and the […]
What’s an Investor to Do?
An easy way to determine if an investment is a good deal or not is to compare your forecasted rate of return to a risk free rate such as a 10 year government bond yield. However sometimes it is hard to come up with an accurate forecasted return because there are so many assumptions that […]
Introducing Evette Mock-Hernandez, Senior Relationship Manager
Waterloo Capital is thrilled to announce Evette Mock-Hernandez has joined the team as Senior Relationship Manager. Evette’s experience as a trusted relationship manager will enhance the Waterloo client experience. With her specialty in developing personalized financial plans, Evette will guide clients through their financial journey. She looks forward to providing a high level of service […]
CARES Act and SBA Relief Programs Offer Support During the Crisis
Help From The Hill The coronavirus pandemic has quickly changed life around the world, impacting individuals, families, and businesses. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed on March 25, 2020, bringing financial support to individuals and small businesses. The $2.2 trillion bill is the largest to ever be passed. The CARES […]
The Evolution of AI + Predictive Analysis – Part 1
A groundbreaking article from The Journal of Portfolio Management1 informs us that the stock market is a complex system, or a system that lies somewhere between the domains of pure order and total randomness. Ordered systems are simple and predictable, and random systems are inherently unpredictable.
Letter to Investors
It’s Been a Grizzly Month… On March 12th we entered the first bear market since the Great Recession. All major stock indexes have fallen more than 25% or more from their peaks in February.