How to Avoid Gambling and Gamification in Your Portfolio July 21, 2021
Market gamification spurred by a wave of retail investors has replaced disciplined investment analysis with speculation and conjecture. For a lucky few “investors,” the irrational behavior has led to short-term success. For most…not so much.
Many advisors don’t realize they are exposing their clients to increasingly severe gambling risks, which begs the question… are you rolling the dice with your clients’ portfolios?
In the upcoming webcast,
How to Avoid Gambling and Gamification in Your Portfolio, Julian Koski, Co-Founder and Chief Investment Officer, New Age Alpha, will describe how to identify and mitigate gambling risks and outline effective tools to help clients navigate these unprecedented market dynamics.
By Matthew Waterman, Director, New Age Alpha
While the Kessler Syndrome, or Kessler Effect, isn’t spoken of widely in social circles, its potential impact on everyone’s day-to-day lives is nearly incalculable. Imagine a world without cell phones, GPS or anything else reliant on satellite technology and one starts to understand the implications. According to the Kessler Syndrome, however, that is a very real possibility.
The general concept involves the ever-accumulating amounts of junk orbiting the earth and, with it, the also increasing probability of a cataclysmic collision. Humans, unwittingly, have left a lot of garbage floating around in orbit. Up there, however, these materials behave very differently than on land or at sea. When traveling at approximately 22,000 MPH, something as innocuous as a paint chip in Low Earth Orbit (LOE) can hit with the force of a bullet. Now imagine if two very large objects collided, strewing vast amounts of wreckage everywhere, which began a
Was Q1 only the start of herd mentality in the market?
By Julian Koski, CIO at New Age Alpha
In his 2004 bestseller The Wisdom of Crowds, James Surowiecki famously provides evidence that when acting independently and in their own self-interest, the actions of individual members of a crowd result in an efficient outcome. Following this logic, if investors act independently in their pursuit of excess returns, the market will be efficient. Of course, the title of Surowiecki’s book is a nod to the classic tome by Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds (emphasis mine). What happens when the individuals in a crowd behave systematically similarly, not independently?
New Age Alpha Launches First US Large-Cap Equity Avoider ETFs, AVDR and AVDG
New Age Alpha Launches First US Large-Cap Equity Avoider ETFs, AVDR and AVDG New Age Alpha, an asset management company that provides the global investment community with ETFs, indexes, SMAs, data and tools, announces two Avoider ETFs, AVDR US LargeCap Leading ETF (Ticker: AVDR) and AVDR US LargeCap ESG ETF (Ticker: AVDG). The alpha-seeking ETFs aim to provide an innovative source of alpha and an uncorrelated source of return by avoiding the losers “ stocks we believe to be overpriced. Tracking the New Age Alpha U.S. Large-Cap Leading 50 Index and the New Age Alpha U.S. Large-Cap ESG Index, the Avoider ETFs follow New Age Alphas proprietary methodology, which is the process of using a probability, the Human Factor, to avoid the losers. The Human Factor is the probability a company will fail to deliver the growth implied by its stock price “ and this occurs when investors impound vague or ambiguous