Our Transition to Quantitative Investment Strategies

(Not Financial Advice)

Announcement

The team at A0 Financial has decided to begin adding quantitive investment strategies. The reasoning behind this switch was that at A0 Financial, we realized that quantitive investment strategies are the future because they incorporate technology, machine learning, algorithms, and artificial intelligence into our trading strategies. However, this is a long-term addition and will take a few years to be accomplished. Thank you, and now we will transition into this week’s market analysis.

Dull Market

The market is in consolidation, but market values are still falling. In the book Bear Market Investing Strategies (paraphrased), Harry says that dull markets are bearish during bear markets. During bull markets, dull markets are bullish. As the Fed is offloading assets from its balance sheet, the fall in market values will get ahead of the fall in market prices. This means that while the Fed is selling its assets, market prices are stagnating, and the selling of assets will soon + the fall in the market value will be realized, not to mention the oversold conditions we now have with the recent rally.