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Keeping it real

Michael Berman, PhD Signal2Noise (S2N) News

S2N spotlight

I don’t know why, but yesterday I was stuck on this simple idea. I had no idea it would produce the fruits it has. If I had invested 50% in the S&P 500 market cap index (traditional one) and 50% in the S&P 500 equal-weighted index and rebalanced the portfolio once a year. I think the results speak for themselves.

In case you think that this was just a lucky 25 years, I ran the same analysis over 50 years, and guess what. There is more outperformance in this strategy than 99% of the active managers over long periods of time, and the best part is it's free—no fund manager fees.

S2N observations

Naturally the last few days have been dominated by the war in the Middle East. The only asset class that seems to be experiencing any real volatility is oil.

USDC is definitely becoming a serious competitor to Tether. I saw some legislation was passed in the US overnight relating to stablecoins. It sure seems these guys will continue to be the grease of the crypto world's engine. I think this is a fertile ground for stat arb traders, an area I want to spend more time on.

S2N screener alert

After registering a very weak day in the shekel. The Israeli shekel registered its biggest 1-day Z-score (7.64) with a 3.62% daily return. [this alert is a day old, but I wanted to share it as it is a biggie.

S2N performance review

S2N chart gallery

S2N news today

Author

Michael Berman, PhD

Signal2Noise (S2N) News

Michael has decades of experience as a professional trader, hedge fund manager and incubator of emerging traders.

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EUR/USD rebounds after falling toward 1.1700

EUR/USD gains traction and trades above 1.1730 in the American session, looking to end the week virtually unchanged. The bullish opening in Wall Street makes it difficult for the US Dollar to preserve its recovery momentum and helps the pair rebound heading into the weekend.

GBP/USD steadies below 1.3400 as traders assess BoE policy outlook

Following Thursday's volatile session, GBP/USD moves sideways below 1.3400 on Friday. Investors reassess the Bank of England's policy oıtlook after the MPC decided to cut the interest rate by 25 bps by a slim margin. Meanwhile, the improving risk mood helps the pair hold its ground.

Gold stays below $4,350, looks to post small weekly gains

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One month of softer inflation data is rarely enough to shift Federal Reserve policy on its own, but in a market highly sensitive to every data point, even a single reading can reshape expectations. November’s inflation report offered a welcome sign of cooling price pressures.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.