Does Valuation Matter? Less Than You Think If You Buy Quality

ByQuantified Trading

Summary: Even the best stocks suffer from extreme overvaluation: Today, the US stock valuations are at the highest since 1999, when the dot-com valuations went completely out of whack. In the decade after 1999, we witnessed the share price of fantastic companies like Coca-Cola, Intel, Cisco, and Wal-Mart languish despite delivering growth and excellent operational…

Interview: Short-Term Trading Is A Zero-Sum Game, Investing Is Not

ByQuantified Trading

This week I was interviewed about my trading philosophy. In the interview, I mentioned how difficult it is to make money daytrading or swingtrading for short-term profits. This is mainly a zero-sum game, I will even say it has negative expectancy due to commissions and slippage. Opposite, long-term investing has a positive expected return, given…