Founder, StockMarketCookBook

Dr. Kris Andersen has been managing money for over twenty years as a private investor and portfolio manager. Combining her love of cooking with her expertise in the financial markets, Dr. Kris developed StockMarketCookBook.com, a website featuring easy to follow financial ... more

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Historical Returns Of Traditional Asset Classes
When considering asset allocation, you must also take into account your investment horizon. Are you in your early 20′s and investing for the next 50-70+ or are you much closer to retirement and need to shelter your nest egg?
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Is It About To Rain On This Rally?
Today’s better than expected jobs number helped hoist most of the major averages to new highs…and pushed the volatility index (VIX) to a low not seen since the beginning of 2007.
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Is It About To Rain On This Rally?
A divergence between VIX and VVIX may be indicate an impending reversal in market direction.
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Sugar Sours
Friday, the stock was soundly rejected from its upper channel boundary and today the stock gapped lower continuing the trend.
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Video: How To Buy Stocks Using Cash-Secured Puts
In this webinar, Dr. Kris Andersen and Marc Chaikin explain how to buy stocks using cash-secured puts. Video length 1:39:15.
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Bulls & Bears Ducking Out Early
Weekend Roundup: The bulls and bears both bugged out early and spent the rest of the day playing seesaw on the beach. Volume was tilted to the light side while the teeter-totter was tilted to the bulls' side. Bullish action (what's left of it) is still heavily weighted towards the oil stocks.
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Comments

Latest Comments
Historical Returns Of Traditional Asset Classes
7 years ago

I respectfully differ with your suggestion that time periods in Modern Portfolio Theory should be separated by decades. One of the criticisms of Modern Portfolio Theory is that it sometimes produces ill advised allocation results too heavily skewed toward one or two asset classes in violation of the very tenet of broad diversification designed to avoid portfolio volatility resulting from being too heavily allocated in too few investment types. One of the reasons this occurs is that a base of data is used which is too short and absent of the litany of market conditions that occur over long periods of time. The time period selected in the article’s analysis, nearly 87 years, includes the breadth of types of markets that occur over time, bull markets, bear markets, flat markets, recession, depression, war, peace, etc. It is only by consideration of all these in a single analysis that Modern Portfolio Theory can properly advise the investor so that they can achieve their long-term goals while experiencing these different markets.

Modern Portfolio Theory does not care why changes occur from decade to decade and I would argue that it is not necessary for the passive investor to care either. The results of the strategy incorporate all the investor needs to know to maintain as straight a line as is possible toward their ultimate financial goal.

The mutual funds and index tracking stocks the article suggests as preferable for a young investor with a long time horizon are indeed the small cap stocks in the more volatile stock market with their higher yields obtained over time. Agreed that a more diversified allocation should be transitioned into over time as the investor inches closer to retirement.

Thanks for taking the time to post your thoughts!

In this article: GLD
Yahoo Virus Converts Millions Of Computers Into Bitcoin Mining Slaves
7 years ago
Perhaps gold might rebound on this news...
In this article: YHOO, BITCOMP
First Ever ‘Technical Analysis Challenge’
8 years ago
If anyone really knows where the market is heading, they have access to a crystal ball. Mine's on the blink but here are my guesses based on support/resistance for the Dow Industrials: 14450 by this Halloween, 14000 by this Thanksgiving and 13000 by St. Paddie's Day.
Cha-Ching! Microsoft Pays Users To Search With Bing
8 years ago
This will definitely pump up MSFT's market share.
In this article: GOOG, MSFT, YHOO
1 to 4 of 4 comments

STOCKS I FOLLOW

GOOG Google Inc.
MSFT Microsoft Corporation
YHOO Yahoo! Inc.

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Musk Stocks Poised For A Fall?
Tesla and SolarCity are testing major support levels.

Work Experience

Education

Massachusetts Institute of Technology
B.S.
B.S. in mathematics with a minor in physics.

Publications