MY JOURNAL FOR TUESDAY MORNING – AUGUST 6, 2019
NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS
Five ways investing differs from gambling, despite what my son tells his friends 📰
Peter Hodson: Investors can get lucky sometimes but skill and homework are far more important
I was talking to my 14-year-old son the other day, and he confessed to me that he tells his friends that my job is “professional gambler.”
I was aghast, of course, and went on to explain to him that investing is dramatically different from gambling. While skill can be used in some games, gambling is heavily tied to luck. Sure, investors can get lucky sometimes but skill and homework are far more important.
I went on to explain five ways that Investing is NOT gambling:
The odds are actually in your favour
In a casino, the game with the best odds is typically Blackjack, where the house usually has an edge of one per cent or less. Craps has similar good odds, depending on the casino. But an edge is still edge: the casino will do better than you will, on average. With stocks, though, you have the edge. Stocks rise more than they fall, and over time even an average buy-and-hold investor should make money. There is a risk premium to equities, and this is your edge: Because stocks can be very volatile, you get paid to own them, through higher investment returns.
Research will overpower luck
Yes, there are some gambling games that require some skill. Bluffing in poker can make you a lot of money, if you are good at it. However… – READ MORE
Peter Hodson, CFA, is Founder and Head of Research of 5i Research, a conflict-free investment research provider for retail investors offering research reports, model portfolios and investor Q&A, which is available to try for free (Click Here).
Bonds and Gold flourish as volatility rises, typical for the last two months of the third quarter.
With the shock realized during Thursday’s session, volatility plays flourished. The volatility index jumped by almost 10%, moving above its 200-day moving average for the first time since May. The uncertainty sent investors fleeing for safety in bonds and gold, each of which broke out of the slump from the past couple of weeks. The iShares 7-10 year treasury bond ETF (IEF) added just less than one percent, charting a new record high, while the Gold ETF (GLD) added 2.40%, more than reversing the loss from the previous day’s session. Each tend to show strength in August and September as volatility ramps up. – READ MORE (click here to seasonality charts)
Tech Talk is a free stock market letter service available at TimingTheMarkets.com and EquityClock.com. Ask us about the Seasonal Advantage Portfolio.
Membership Has Its Benefits | Arthur Hill, CMT & Greg Schnell, CMT 📺
Greg Schnell and Arthur Hill go head-to-head in a showdown highlighting the benefits of having a StockCharts.com membership and the disadvantages of not having one. See how these two experts use StockCharts and our many exclusive, members-only features to succeed in the markets and make better investing decisions.
If you’re not already a StockCharts Member, sign up for a FREE 1-month trial now at StockCharts.com/join
BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS 📈
Ballard Power Systems (TSX:BLDP)
Cantex Mine Development (TSXV:CD)
Dream Office REIT (TSX:D.UN)
Viemed Healthcare (TSX:VMD)
Xebec Adsorption (TSXV:XBC)
Parkland Fuel (TSX:PKI)
Recipe Unlimited (TSX:RECP)
MOMENTUM ALERT SIGNALS 📡
Have a great day! 🙂
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