Investing with mind, body and emotion – with Bonnie Foley-Wong

retirement investing with Income&

Bonnie Foley-Wong is an entirely new type of investment advisor.

Bringing together an integrated investing decision-making process that includes tapping into your emotion, intellect, and intuition, Bonnie helps investors take positions in private companies.

Join Bonnie and I for a very engaging conversation that will help you discover your own motivations for investing and hopefully provide some amazing introspection.

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About Bonnie Foley-Wong

Bonnie is the chief investment innovator and pollenator, founder of Pique Ventures.

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Predict the next M&A – with Arye Schreiber

M&A crowdsourcing

By most account, the M&A process is fundamentally flawed.

Incentives aren’t aligned — from advisors to bankers to CEOs. All want more M&A, not more successful deals.

This week’s guest on Tradestreaming has created a crowdsourced model for investors to help predict the next successful merger and acquisition. Arye Schreiber, founder of Merjerz,  has created what he feels is a better model to align incentives, encouraging fundamentally more successful M&A activity.

And investors can be first to know.

Listen to the FULL episode

About Arye Schreiber

Arye is the founder of Merjerz. His previous experience has been in corporate law, advising multinational companies on M&A.

Continue reading “Predict the next M&A – with Arye Schreiber”

Winning strategies: Investing using policy as a guide – with James Juliano

policy based investing

A lot of investors claim they’re focused on the big picture.

Others give lip service to their focus on “the long term”.

James Juliano, partner and portfolio manager at Kairos Capital Advisors, walks the walk. He and founder of the firm, Russell Redenbaugh, use economic and government policy as a guide for their investment decisions.

James joins us on Tradestreaming Radio to talk about how he deciphers the policy tea leaves and how those big ideas get implemented tactically int their portfolio.

Listen to the FULL episode


Continue reading “Winning strategies: Investing using policy as a guide – with James Juliano”

How transparent is financial social media really?

financial social media

Over the past few years, investors have been treated to an unprecedented level of transparency thanks to Twitter/Facebook/blogging.

With millions of people tradestreaming (the collective publishing of investing advice 24/7) out onto social networks, all an investor needs to do is just plug in and begin learning from investors much more experienced and talented than he.

Moving beyond just listening to the stream, many investors are replicating hedge fund returns by following top investors’ quarterly regulatory filings on sites like market folly and using research tools the likes of AlphaClone (affiliate link because it’s awesome).

Here’s an example of how I’ve built my own DIY all-star hedge fund.

Professional advisors and the social media pushback

But this post on Quora (if you’re interested, follow the Tradestreaming board on Quora) got me thinking about how transparent investors — particularly, investment advisors —  really are online.

In fact, in talking with many portfolio managers about the merits of joining a marketplace for portfolio managers like Covestor, one of the biggest pushbacks I’ve heard has been the need to be completely transparent. It’s one reason why truly valuable actively managed strategies may not make their way to ETF format: investors can track (almost) every move.

As the Quora post describes, many investment advisors feel that their stock picks are their special sauce and wouldn’t do anything to jeopardize losing their edge.

There’s little advantage in it for them, because for most the exclusive nature is their bread and butter

Freemium: emphasis on the -mium

When they approach publishing online, these investors actually reveal very little of what they’re really doing with their portfolios. They throw a bone to investors here and there, but typically it’s just a throwaway investment idea, not something they’d stake their livelihoods on.

If these investment types are really using a freemium model to attract new clients, they’re definitely emphasizing the –mium part, not the free.

The downside risk of being wrong outweighs opportunity of being right

Of course, like financial newsletters, there’s a downside to being completely transparent — the risk of being wrong. Investors want to believe good managers (and newsletters) are infallible. All their picks go up. Returns are always outsized.

Just take look at Jim Jubak — he’s publishing away, airing his laundry for the world to see. He gets some right and some wrong. The point is no stock picker is going to be infallible.

Advisors have good months and bad ones — that’s part of the game and inevitable. It’s how well advisors limit their downside on the bad months that determines how good overall performance is going to be. Investors don’t like to think about how hard investing is (geez, May 2012 was impossible).

As Barron’s Steve Sears said in my recent interview with him:

Investors want a pharmaceutical solution to investing, a magic performance pill they pop to succeed.

But of course, for most of us, we understand that it’s not always the outcome of the investment advice. Rather, it’s the thought process, the intellectual back-and-forth to hone a thesis about what the world will look like in the future.

That’s hard but it’s also a conversation worth having. That’s why I’m betting on the tradestream as the future of investing.

 photo courtesy of Fayster

Investing on the edge: Weekly update on tech, social media and investing (May 22, 2012)

Subscribers (free) to my newsletter received the following this week. It’s my best-shot at providing an overview on

  • important research and new investment strategies
  • new technologies, apps, and platforms for investors
  • insights into the behavior of investors
  • changes in the investment business

Investment Products

How fund firms are luring advisors to use their products (Financial Planning)
Posted: May 17, 2012

This article describes the tactics fund firms are using (“value-added programs”) to encourage the usage and sale of their products for/to clients.

Vanguard lapping index fund competition (InvestmentNews)
Posted: May 15, 2012

Vanguard has seen over $65 billion in inflows, 4X the money its largest competitor (PIMCO) has seen.

AlphaClone signs partnership to license hedge fund replication index (AlphaClone)
Posted: May 15, 2012

AlphaClone, a platform that empowers creative hedge fund replication strategies, has taken a step that puts it one step closer to launching a fund based on its data.

Navigating the ETF Galaxy (Systematic Relative Strength)
Posted: May 15, 2012

This article by the folks at Dorsey Wright examines the state-of-the-art in ETF land and where the market is pointing for future growth.

Continue reading “Investing on the edge: Weekly update on tech, social media and investing (May 22, 2012)”

Using Google to forecast an earnings pop (or plunk)

Google’s my friend.

Not only do I rely upon it for email, video, and of course, search, but I’m using it to invest  better and smarter (the Tradestreaming way, right?).

Let me explain:

One of my first podcasts on Tradestreaming Radio was with finance professor, Joey Engelberg. In How to use Google search data to invest, I asked Engelberg about a paper he had recently published that showed how useful Google could be in forecasting stock prices.

Using Google Search Data to Invest by tradestreaming

Specifically, Engelberg noticed:

  1. Google search volume likely measures the attention of retail investors
  2. and does so in a more timely fashion that existing proxies of investor attention

And of course, stock prices tend to follow attention.

So, an increase in Google search frequency (SVI) predicts higher prices in the next two weeks and also contributes to a large first-day return (and long-run underperformance) of IPO stocks.

Awesome stuff and after we spoke, Joey kind of went underground (he did leave UNC and headed for UCSD), using his research to make coin at a hedge fund. I spent a whole chapter in Tradestreaming (my book) describing co-lateral research — stuff that’s inherently non-financial in nature (Google search, Amazon ratings, etc) to help us make better investing choices.

Now a new paper shines light on how Google search reflects investor information demand and what that means for earnings news.

Continue reading “Using Google to forecast an earnings pop (or plunk)”

Top CEOs of Online Finance

I try to do my best, covering the online finance scene. In top financial startups, we named some of the best, most interesting and compelling, the best websites for investors.

Now, I’d like to turn my sites to an ongoing experiment in crowdsourcing — who do you think is the best CEO of online finance firms?

I’ve started the conversation, naming a few of the top CEOs of startups tacking the investment space.

Who do you think should rank highest on this list? Who would you add/subtract from the list?

[listly id=”YO” theme=”light” layout=”full” numbered=”yes” image=”yes” items=”all”]

Bringing investment services online – with Personal Capital’s Rob Foregger

the future of the bank branch

Delivering investment advisory services solely through the online channel is a game changer.  But getting it right has eluded even the biggest of investment managers.

Fresh after a big funding round, Rob Foregger’s Personal Capital aims to be a dominant player in online finance. Rob’s got over 20 years experience in direct-to-consumer finance that he’s bringing to the table with the rest of Personal Capital’s A-team management.

Join Rob and me as we discuss the genesis of Personal Capital, how the online advisor intends to scale, and the future of online investing.

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Avoiding investing scams in the Age of Fraud – with Pat Huddleston

Pat Huddleston is an increasingly busy guy.pat huddleston's The Vigilant Investor (Investor's Watchdog)

The former SEC enforcer is author of the new book, The Vigilant Investor: A Former SEC Enforcer Reveals How to Fraud-Proof Your Investments.

In this episode of Tradestreaming Radio, we discuss why Pat refers to our era as the ‘Age of Fraud’.  Please join us to learn how to identify and avoid investment scams.

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Tradestreaming users like new format of my newsletter (do you?)

If you haven’t noticed recent changes (or are not yet subscribed) to my weekly newsletter (Sundays), it appears that some recent tweaks to the format are being well received by the rest of us.

The point of my weekly email is to help you quickly get a feel for all the cutting edge news and analysis impacting today’s serious investor.

I’ve begun adding more links/news and categories including:

  • investment products
  • social media, technology and investing
  • investment strategies and research
  • the financial advisory business
  • investor behavior

You can see an example here and subscribe here.

By the way, I didn’t just randomly pick the new categories above — I’ve spent a lot of time thinking about how investors learn to become better and how this information breaks down into categorization.

The changes have resulted in a slightly higher open rate (how many people are opening my weekly message) and and almost double the numbers of clicks on links. I take that as a good thing.

 

Are you reading my weekly Tradestreaming newsletter? What do you think — do you like the changes?

What would you like to see more of from me?  Let me know in the comments below.