The latest asset allocation survey from AAII showed a new high in demand for stocks and new lows for both cash and bonds. Stocks experienced a notable jump to a 68% allocation from just 64% in November. Bond holdings were down 2% to just 15% and cash holdings were down 2% to 16.5%.
Did 2013 “Prove” Any Economic Theory Right?
The last few years taught us a lot about the field of economics. In fact, most of what we’ve learned has been the result of the enormous mistakes many have made throughout the crisis.
Rail Traffic Ends 2013 at a 2.5 Year High
Rail traffic finished 2013 with a boom. Intermodal jumped 10.6% on the week which brought the 12 week moving average to 7.6%. That is the highest 12 week average reading since May of 2011.
Sam Stovall: Prepare for More Turbulence
Interesting market thoughts here by Sam Stovall of S&P who notes that 2014 should be much more turbulent than 2013:
“Inflation does not appear to be monetary base driven”
Pretty interesting self reflection and admission of error by Art Laffer here. In an interview with Business Insider he discusses why he was wrong to predict high inflation and high [ … ]
The Biggest Risk in 2014: Recency Bias
The biggest risk in 2014 is likely to be a common one – recency bias. Otherwise known as your own brain’s tendency to focus excessively on things that have only just occurred.
The Sankowski Solar Boom
The energy innovation boom is only just beginning. Who will win and lose in the next 10 years is beyond my understanding, but it’s exciting to think about all the potential benefits that could arise out of a world where oil is no longer holding so many people hostage in so many ways.
A Little Housekeeping to Start 2014….
Hi Everyone. Welcome back to the office. I am sure you’re excited to be there. I just wanted to let you know that I’ve switched up some things on the site a little bit:
Open Forum – What’s on Your Mind as 2014 Begins?
This is usually a good time of year for brainstorming and considering big picture items so I figured I’d turn the floor over to the readers here.