Stock Market Archives - Joshua Kennon

Feb22021

GameStop Corp stock index is seen on a smartphone. Trading in GameStop impacts Wall Street hedge funds. PENANG, MALAYSIA - 31 JAN 2021.

Let’s Talk About the GameStop Short Squeeze

Stock MarketBy Joshua Kennon February 2, 2021 Leave a comment

The news has been filled with stories about GameStop and other stocks with high “short” interests being squeezed in recent weeks so there is no point in me rehashing the specifics. There is a lot I could cover about the actual procedure for how trades settle, how short squeezes happen, who is innocent and guilty, and a host of other relevant topics. Enough ink has been spilled, digital and print, that I’m going to focus on the bigger picture, instead. This whole situation is not good.

Jan202016

Stock Market Valuation, Timing, and Systematic Purchases

Market Timing, Valuation, and Systematic Purchases

Dollar Cost Averaging, Portfolio Management, Stock Market, Value InvestingBy Joshua Kennon January 20, 2016 58 Comments

Market Timing, Valuation, and Systematic Purchases I have a lot of work to do but I’m sitting at my desk, the snow is on the ground outside, I have a fresh cup of coffee in front of me, and I don’t really feel like diving into my task list quite yet. This is going to…

Aug272015

Let’s Talk About Investing in Oil Stocks and the Oil Majors

Portfolio Management, Stock Market, Stocks, Value InvestingBy Joshua Kennon August 27, 2015 53 Comments

I’ve received a significant number of requests over the past few months asking that I discuss what is happening with oil, natural gas, pipeline, and refining companies; to explain how I look at the situation and the sorts of things Aaron and I discuss when we’re allocating our own capital or the capital of those who have entrusted their assets to us. It’s a big topic with a lot of niche considerations but I want to take some time today to address the oil majors; the handful of mega-capitalization behemoths such as ExxonMobil, Chevron, Royal Dutch Shell, Total, ConocoPhillips / Phillips 66, and BP.

Aug162015

5 Theories About Investor Behavior in the Stock Market

Stock MarketBy Joshua Kennon August 16, 2015 78 Comments

After so many years of investing, interacting with people, and writing about stocks, mutual funds, index funds, and portfolio management, I have five theories that help explain investor behavior.

Jun192015

Nasdaq Surpassed Dot Com High 15 Years Later

After 15 Years, the NASDAQ Surpasses Its Dot-Com High

Index Funds, Stock MarketBy Joshua Kennon June 19, 2015 37 Comments

On August 9th, 1995, the company behind Internet browser Netscape went public, skyrocketing as people fought to get a piece of the so-called “new economy”. It set off a buying panic among the public that lasted five years; otherwise rational men and women convinced that this time really was different, the mania feeding on itself. Anything and…

Mar122013

A Look at Some Major Stocks During the Bottom of the 1933 Stock Market Crash

Stock MarketBy Joshua Kennon March 12, 2013 11 Comments

We’ve talked about the 1929 period a lot lately, but what you need to remember is that it was a walk in the park compared to 1933. It wasn’t until then that everyone had gone broke, given up hope, and sworn off stocks for life, leaving great businesses trading at double-digit dividend yields and a…

Food Stocks and the Great Depression

Stock MarketBy Joshua Kennon March 8, 2013 2 Comments

For the serious investors among you, I recommended a book about the 1929-1933 crash that is the single best statistical resource on the subject I have ever encountered. After talking about it on the site, I’m going back through the 700+ pages and I really can’t emphasize enough how seeing the effects of the worst…

Mar72013

The Valuation Levels Prior to the 1929 Crash Were Absurd

Stock MarketBy Joshua Kennon March 7, 2013 4 Comments

A week ago, I recommended a now-out of print book from 30 years ago that was an academic study of the Great Depression called The Crash and Its Aftermath. It is, hands down, the most useful statistical survey of the Great Depression and the 1929-1933 period I have ever read. It instantly ranks up there…

Oct312012

Monopoly Stock Exchange Add-On Stock Certificate

The Last Time the New York Stock Exchanged Closed for Two Days Due to Weather Was In the Blizard of 1888

Stock MarketBy Joshua Kennon October 31, 2012 6 Comments

The New York Stock Exchange is set to reopen today after having been closed for two consecutive trading days as Hurricane Sandy made landfall on the Eastern seaboard. The last time this happened due to weather was in 1888, when a blizzard shut down the city. It could have been much worse. The lesson: You…

Oct222012

How to Remain Detached from the Stock Market and Treat Your Investments Like Private Businesses

Portfolio Management, Stock MarketBy Joshua Kennon October 22, 2012 12 Comments

How to Remain Detached from the Stock Market and Treat Your Investments Like Private Businesses When I was much younger, I kept seeing Benjamin Graham’s famous allegory called Mr. Market mentioned by great economists, investors, and financial historians. I bought a copy of The Intelligent Investor to figure out why everyone was so enthralled with a book…