#smart alpha

Can BarnBridge (BOND) make money from SMART Bonds?

BarnBridge (BOND) is a defi protocol designed to tokenize risk. The plan at the BarnBridge DAO is to reduce decentralized finance (DeFi) risks by redistributing risks through tokenization. To that end, BarnBridge creates Structured Market Adjusted Tranches (SMART) Bonds. A tranche is a slice or portion of a security that is sold to investors or speculators. BarnBridge creates and tokenizes risk…

It’s no secret that Value has been cold lately. Although many such stocks have moved off their lows, Value ETFs are, on average, still down 3.68 % in the past year. This does not, however, mean it’s now a bad idea to choose stocks whose prices are reasonable relative to fundamentals. It does, however, mean we have to be especially careful about the fundamentals.

Another three months, another refresh of the Smart Alpha Equity Income portfolio. There were plenty of trades, 19 out of 20 positions turned over. That’s par for the course and to be expected: The model reaches for yield as far as feasible without straying into the junk-income territory, and that requires that we not allow metrics that lead to purchase to become stale with age.

Risk is something we haven’t worried too much about over the4 past 30-plus years. Despite some big collapses, when all was said and done, stocks rose a heck of a lot more often than they fell, which means recklessness wasn’t penalized as heavily as it might have been. 

It’s different now. Risk is a big deal. Unfortunately, when we look more closely, we see that traditional ways of measuring risk don’t make nearly as much sensed as we initially thought they did. 

But Portfolio123 Smart Alpha has other ideas.

What industry or sector is a company in? More important, why do you want to know? If it’s just for the heck of it, that’s fine. But if you’re looking to discover the relevant investment characteristics of the company’s line of business, you may want to consider Smart Alpha Themes.

Small cap, large cap, mid cap, micro cap, nano cap, mega cap . . . size, size and more size. We sure do like to talk about it a lot. But is it a legitimate, serious investment factor? Yes it is.

If you think momentum in the stock market is for poor souls who don’t know any better, think again. It’s an important and legitimate style, or factor.

Quality in the stock market is more than just a basis for finger-pointing and we say some companies are “good” and others aren’t. It’s a legitimate and important investment style, or factor, unto itself. And in Portfolio123 smart Alpha, it’s a pretty important style.