Finance Friday

Finance Friday #4: Shark Attack

Inverse correlation charts just look so cool…

Chart of the Day

For the first time in a long time, the number of job openings actually matches the number of unemployed. Take a moment to admire this beautiful convergence:

job openings & unemployment converge

Investment of the Week

Based on the amazing charts in Jeffrey Kleintop’s How to Avoid a Shark Attack article for Charles Schwab this week (an absolute must read), a large value EAFE investment would be a great mean reversion play right now.

The iShares MSCI EAFE Value ETF (EFV) would be the best fit for that strategy. It tracks a large cap value index of companies in developed countries in Europe, Australia, and the Far East. EFV has low valuation ratios in comparison with other EAFE funds right now. It has a reasonable expense ratio of 0.39%. Its only downside is that it is heavily weighted toward the financial sector by about 34%.

Quote of the Day

Screen Shot 2018-05-17 at 10.27.59 PM
(Source)

Read

How To Avoid A Shark Attack
Jeffrey Kleintop, Schwab.com Market Commentary, 05.14.2018

Smart Beta Vs. Factor Funds: What’s The Difference?
Debbie Carlson, ETF.com, 05.10.2018

Individual Bonds vs. Bond Funds
Kathy A. Jones, Schwab.com Portfolio Management, 05.11.2018

Listen

Tren Griffin – Pulling the Thread
Patrick O’Shaughnessy, Invest Like the Best, 05.15.2018

James Chanos Discusses Investment-Driven Models
Barry Ritholtz, Masters in Business, 05.11.2018

In Case You Missed It…

Check out my recent article, 3 Reasons Microsoft Is a Great Company. Ironically, a day after writing it, my Microsoft Excel software crashed 3 times, and the crash report software that automatically opens after a crash… yup, that crashed too. They may be innovative, but they have some debugging to do!

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