Elite Wealth Management Blog


The Logic Behind AI’s All Time Highs

Imagine a time when computers start to beat humans at their own games, like world class grandmaster chess players, the best Go players or trivia champions. Well, this actually happened years ago.

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Transportation is Evolving

The number of autonomous vehicle testing permits in California alone has increased 4X since September of 2015. Back then, only 9 firms had permits from the California Department of Motor Vehicles. Permit holders today include the major players; Apple, Google, Ford and many more. From indicators like this, our opinion is the automotive industry is pivoting…

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The Death of Retail

A new age of consumer spending has seemingly taken some of the retail sector by surprise. Brick and mortar stores are battling a time where 95% of Americans are within arm’s reach of their smartphone 24/7 and e-commerce sales are consistently growing at a rate of 14% year-over-year…

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How to Interpret Fed-speak

Everyone knows the Fed is data dependent, it’s a famous phrase used in all of their statements. “The actual path of the federal funds rate will depend on the economic outlook as informed by incoming data,” as the Fed put it in their latest release1. But what should investors exactly look at when deciphering the Fed?

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Tech Trend: How to Play Cybersecurity

The internet has been growing at an incredible clip…but so has cybersecurity threats. The internet of things, mobile applications and other connected mediums have woven their way into our daily work lives and at-home routines. Criminals view this as an opportunity to subtly connect to your smart device in order to steal your personal or professional data; however, billions of dollars are getting put to work to prevent such an occurrence.

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Monetary Policy World Tour

Alpha can be found in any corner of the globe, but before capital can be put to work, the fundamentals must be taken into consideration. Nowadays, one of the biggest drivers of returns is central banks. Accordingly, below is what you need to know for each major central bank, from where they stand to what expectations are being priced in, as well as the effectiveness of their current policy as measured by economic activity and inflation.

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Edge in Selling Options Part 2: The Put-Write

$100 invested in the CBOE S&P 500 Put-Write Index strategy in 1986 would be worth just about $1,700 today, clocking in at 10.1% annual returns.

A CBOE study recently concluded that despite the perceived risk of shorting puts, the strategy has performed incredibly well, even during the 2008 crash. Specifically, the study tested selling at the money puts on the SPX one month out and investing the secured cash in three month treasury bills.

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What’s Behind Alphabet’s X: The Moonshot Factory

Alphabet’s moonshot factory, X, is trying to solve huge problems with breakthrough technologies and seemingly radical solutions to make the world a better place. While investors can obviously participate by owning Alphabet, the projects they are working on could be forward looking investment ideas as well.

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Japan’s J Curve

Japan’s most recent affair with quantitative easing began in October of 2010 following poor economic and inflation growth after the great recession. Since then, Japan’s headline stock index, the Nikkei 225, has rallied nearly 70%; however, Japan’s quantitative easing program has far outpaced stock market growth.

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Buybacks Boost Silicon Valley

The Bay Area knows its way around an expansion cycle. Few have experienced equity volatility like Silicon Valley, for both public and private entities. Low interest rates and a general appetite for risk has seemingly pushed tech multiples to the moon, but this underlying trend has bolstered The Valley more than many give it credit.

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What Actually Drives the Price of Oil

Commodities are often associated with purely speculative investments. This is simply not the case. Just like a stock, commodities have fundamental drivers too.

The price of oil has become increasingly more important since it began to tumble back in June of 2014. When the market started to trend with oil, interest in black gold surged even more. With renewed interest in oil, it’s essential to look at what the professionals consider when analyzing a trade.

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How the ECB is Actually Hurting Banks

European bank stocks have been getting slammed. Concealed by Chinese Yuan and Federal Reserve headlines, European financials have secretly been having a terrible year. Poster child European banks like Deutsche Bank and Credit Suisse are down nearly 30% and 40% respectively in the last six months—

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Myth: America Will End Up Like Japan

“Whatever it takes” is an aggressive mandate for monetary policy—nothing short of historic. Momentous action is called for, however, in the case of Japan. The Bank of Japan (BOJ) is attempting to rescue the country from its decade long economic slump. Accordingly, Japanese central bankers have passed some of the most aggressive policy measures ever seen. Despite these actions, Japan is still plagued with subpar inflation growth and is far from its consumer price index goal.

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Edge in Selling Options Part I: The Buy-Write

Alpha can be elusive. Many investors spend their careers chasing fads and attempting ill-fated trades to hopefully boost their performance. Finding these opportunities, historically, required a research team and other scarce trading resources. Now more than ever, these capabilities are freely available to investors through technology. Interest in extracting alpha via options has brought forth the rapid adoption of options as a risk management and return enhancement tool.

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So the Fed Raised Rates…Now What?

Janet Yellen is in a tight spot. Domestic economic indicators seem to be strong compared to the rest of the world, but a backdrop of diverging international economies seem to have gotten the better half of other central banks.

Despite these concerns, the Fed stuck to its plan of raising interest rates in December to 0.25%, kicking off a new interest rate regime. Going forward, investors will need to look at the 2016 calendar for clues as to when the Fed will raise again.

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What to Expect In the Final Quarter This Year

We’re finally coming to a close for 2015, and the final quarter will be the conclusion to a year that’s been defined by uncertainty and uneven performances. Mixed economic data haven’t given investors a clear vision of what the future will look like, while other regions around the world have shared in a global economic slowdown that finally culminated in a collapse in the Chinese stock market last quarter.

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What We Need To Happen For The Fed To Raise Rates

It’s been roughly one year since the Fed ended its historic quantitative easing program and gave control of the economy back over to the free market. With those memories of a Fed driven market still fresh in investors’ minds, it seems that the Fed is once again in control of this market’s destiny. Markets are quickly retreating to a “wait and see” trading mentality when it comes to Yellen, which is contributing to a rise in uncertainty and volatility in the broader averages…

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Understanding The Difference Between A Correction And The Start Of A Recession

Wall Street has been behaving erratically over the past few weeks ever since the Chinese contagion finally reached U.S. shores. As of the close on September 8, 2015, the S&P 500 has shed nearly 110 points, a 5.29% loss, in the past month even after recovering from a drop of nearly 230 points earlier. Meanwhile volatility has soared more than 85% over the same time frame and is currently holding steady around 25…

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The Stealth Bear Market That Could Take Markets By Surprise

Investors have been on a bit of a rollercoaster ride the past several days as the markets dipped down and back up by hundreds of points. Volatility rocketed up with the VIX ending Thursday the 20th at 19.14 and reaching a staggering high of 53.29 intraday on Monday the 24th – an increase of more than 178% in less than two trading days…

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We do not represent that the information contained herein is accurate or complete, and it should not be relied upon as such. Opinions expressed herein are subject to change without notice. Certain information contained herein (including any forward-looking statements and economic and market information) has been obtained from published sources and/or prepared by third parties and in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, Elite Wealth Management does not assume any responsibility for the accuracy or completeness of such information. Elite Wealth Management does not undertake any obligation to update the information contained herein as of any future date.

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