MacroValueQuant

Why I am a MacroValueQuant
I can tell that I take trading too seriously because I have named my strategy. I couldn’t really describe it many years ago when I first started but I know that it has changed over time. The reason why I describe it as a MACROVALUEQUANT is because it represents a combination of what I slowly have morphed into. The first part of my anagram is MACRO, which describes my growing focus on truly understanding macroeconomics or the working of national economies. So I spend a large part of my reading and listening to stats about the US economy and even global economies. I truly believe that this is a strong approach when evaluating stocks because it gives you a lay of the land. So if you flashback over the past few years, I believe my investing alerts are more likely to be successful if I have better sense of the possible economic scenarios stocks face in the US. A few timely examples of MACRO events that were helpful to be aware of were the housing crisis and the financial crunch. The goal can be either to direct investments to areas that may benefit the most or to simply identify times where it is best to preserve capital.

QUANT represents my love affair with all things quantitative. Purdue University gets a little (okay a lot of) credit for the great mathematical emphasis on quant and statistical analysis. I’ve come to appreciate analytical models and scenarios that may produce highly probable events over time. I remember when I first learned about the January effect and the inefficiencies that exist at times in the efficient market theory. Some of these inefficiencies are due to human nature, things like fear and greed, and a quant approach can help alert when opportunities are available to benefit or stay away from.

VALUE helps to determine whether or not a stock is cheap. I truly have personally experienced not much good can come from buying something overvalued…stocks included. I don’t even really like buying many things at their normal value and prefer discounts and ‘margins of safety’.

So to summarize MACRO helps me find the most likely sectors and industries to benefit from. QUANT screens alert me of opportunities. And VALUE helps me verify that when I buy an alert, I am buying most of my stocks at a discount.

SuperBowl Sunday Predictions

My predictions for this game are easy. I think the New Orleans Saints will come marching in on a wave of energy and make it an exciting game. The seasoned vets known as the Indianapolis Colts will regain the upper hand and gallop to the finish line. I love the Colts, and being that I am from Indianapolis, its a slightly biased prediction. I am proud of my boys in blue and no city deserves to be forgotten in this game.

I hope that we can remember that this is just a game and many things need to be done to bring our economies back and our vibrant cities. These two teams are perfect examples of that. Indianapolis is definitely a working class city in a state has been decimated by manufacturing jobs being lost. I am a testament to the brain drain of Indiana with great college educational institutions, but with limited jobs to keep natives in state. When you can boast about the likes of Purdue, Indiana Univ, and Notre Dame to just name a few, this state should be churning out companies, products and innovation. New Orleans and the lower ninth ward deserve not to be forgotten either. After suffering from a natural disaster that ravaged the coast, this city should a beacon for how we all need to rally around each other. A victory will be much needed for both cities and more importantly lets hope that we don't forget their stories when the game ends and a champion is crowned.

2007 Year In Review

I have been so busy with stock updates lately that this year went by without many pics of what's been going on with me. Here is a quick review of my 2007:

Feb '07 - The guys @ NBA All Star Weekend in Las Vegas:

April '07 - My first trip to London, England and Sierra Leone, West Africa:

That's our Bed n Breakfast in England, a family shot in Africa, me with twists in my hair.

Summer/Fall Pictures:

My brother graduates and moves to Chi-town. Hanging out during a great summer. The hit and run accident that totaled my SUV.

A trip to the "Big House" to watch the Purdue vs Michigan football game:

Charity Event @ Soldier Field (Big Bros)

New Years Eve: