Tag Archives: etf

Facebook’s Oculus Rift: Reviews Mixed, As Content Still Lags

What’s clear from the swath of reviews of the Facebook ( FB )-owned Oculus Rift virtual-reality headset is that the technology has most certainly arrived, but for the most part, the content still needs to follow. From the reviews and my own experience with the Rift, it’s hard to argue that — at the very least — new types of video games are right around the corner. The Rift is a solid piece of technology that works reasonably well under most circumstances, and video game reviewers  mostly agree . Hardware-wise, the main gripe among the reviews was that the Rift didn’t ship with motion sensitive controllers that Oculus demonstrated this month at the Game Developers Conference in San Francisco. The Rift shipped with a Microsoft ( MSFT ) Xbox One controller. Such controllers would allow anyone donning the headset to make gestures and manipulate VR content in a more life-like fashion. The motion-sensitive controllers are coming later this year, Facebook says. But as IBD reported from GDC on March 17, the hardware is here (or within a whisker), but the content has yet to come. It’s not clear whether the software shipped with the VR headset will match the impressive hardware. Of the titles I tried at GDC, none were too compelling, though I sampled a mere seven games. Reviewers at the  New York Times , the  Wall Street Journal  Digits blog (but not the newspaper itself ), and gaming website IGN  (among others) agree with my assessment. The Rift debuted with 30 titles, ranging from $10 to $60. The majority of the reviews that IBD looked at for this post were in gaming publications, and reviewers acknowledged little out there yet in the way of worthwhile non-gaming VR content, such as VR movies that video-streaming companies such as  Netflix ( NFLX ) are exploring. The Rift headset’s $600 cost was cited in many reviews as a deterrent to all but the most dedicated of gamers — especially considering the headset requires a PC with advanced graphics hardware that runs about $1,000. And it doesn’t yet work with Apple’s OS X. Many reviews of this first-generation Rift, such as the review by the New York Times, said reviewers eagerly await better content and future generations of the device. And Facebook will soon have company. HTC plans to launch its VR headset, Vive, in April. It will retail for about $800 and feature hardware similar to that of Facebook’s Rift. Sony ( SNE ) also has a VR offering coming for its PlayStation console, likely to hit stores in Q3 or Q4.

Beat The Stock Market Without Any Shorting

I have often said that excellent strategy indices should be elegantly Zen – simple, powerful, and effective. Many people mistake complexity for power or effectiveness. Today, we will examine an index that is elegantly powerful and effective. Then, we will examine ways to improve it. Here are the Ultra-Low Volatility Index’s rules: Buy ZIV (NASDAQ: ZIV ) with 20% of the dollar value of the portfolio. Buy UPRO (NYSEARCA: UPRO ) with 40% of the dollar value of the portfolio. Buy TMF (NYSEARCA: TMF ) with 40% of the dollar value of the portfolio. Rebalance weekly to maintain the 20%/40%/40% dollar value split between the positions. Here are the results: (click to enlarge) Click to enlarge (click to enlarge) Click to enlarge The logic behind the strategy is that ZIV, the inverse mid-term VIX futures ETP, is a return generating component of the strategy by capturing the contango which exists (on average) in mid-term VIX futures. UPRO is a 3x leveraged S&P 500 ETP. It is a return generating component of the strategy which gives leveraged stock market exposure. TMF is a partially hedging component of the strategy through a 3X leveraged long duration government bond exposure. Statistically, often but not always, this instrument moves inversely to stocks, thereby providing an imperfect hedge. I want to stress that this simple three-instrument index trounces the U.S. stock market, without any stock picking required. This index is a multi-asset class (inverse volatility, equity, and fixed income) and is easily rebalanced. However, it is also a simplistic public version of our strategy index technology. Many readers of our public pieces believe the profits from our publicly released strategy indices are almost magical compared to anything else they have used. Even though their gung-ho confidence in our methods is flattering, I am very sincere when I say that our publicly disclosed strategies should be starting points for further investigation on the part of readers – not a combat-ready index that we would provide through our subscription service. I think it is important for combat-ready indices not only to contain multiple asset classes, properly weighted, but even more importantly, that they have a built-in risk control component. And robust, systematic risk control not only has rules for exit, but also rules for re-entry. Getting out of something is only half of the equation. Having a systematic method for when to get back in is the other half. When one studies financial markets during the financial crisis, and especially 2008, it is clear that one not only needs a multi-asset class framework, but also solid risk control rules, in order to try to avoid crippling drawdowns. Constant crises, drops, and fed policy responses should remind us that systematic risk control is just as important as asset class exposures going forward. For those looking for such an index approach, ZOMMA has strategy index solutions which incorporate risk control. Thanks for reading. We feature even more impressive strategy indices in our subscription service, with clear risk control protocols. If this post was useful to you, consider giving it a try. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points, which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Facebook, Google, Amazon May Be Caught Up In Netflix Regulatory Flap

Netflix ’s ( NFLX ) revelation that it has reduced the quality of video streaming to the wireless customers of AT&T ( T ) and Verizon Communications could complicate Web regulatory issues for Internet giants such as Alphabet ’s ( GOOGL ) Google, Facebook ( FB ) and Amazon.com ( AMZN ), says a Guggenheim Partners analyst. Netflix last week fessed up to throttling video to AT&T and Verizon ( VZ ) customers for several years, but not to the wireless subscribers of Sprint ( S )or T-Mobile US ( TMUS ). Netflix says it lowered video quality to protect its own customers from exceeding the monthly data caps of AT&T and Verizon. Sprint still offers unlimited data plans while T-Mobile typically slows network speeds rather than imposing overage fees, said a report. Paul Gallant, an analyst at Guggenheim, says Netflix’s policies do not violate federal “net neutrality” rules, which bar Internet service providers from throttling, blocking or prioritizing Web traffic. The rules apply only to ISPs, not Internet firms, noted Gallant. The Federal Communications Commission in February, 2015 expanded net neutrality rules to wireless networks for the first time. A federal court is expected to rule on a legal challenge to the FCC’s new net neutrality rules in April. “Getting ‘caught’ doing this may put Netflix on its heels in Washington at a time when important (Internet) policies like interconnection pricing and zero rating are fluid and could go either way,” said Gallant. T-Mobile and Comcast ( CMCSA ) have adopted video policies referred to in the telecom industry as “zero rating” because streaming does not count toward monthly data caps and there are no payments involving content partners. FCC chairman Tom Wheeler has pushed for competition between Internet video providers, also called over-the-top (OTT), and the pay-TV industry. “ISPs have long complained that they are being unreasonably singled out for regulation within the Internet ecosystem. This Netflix report may highlight for government officials the leverage possessed by large Internet companies,” added Gallant. “Slowing streams to specific wireless (users) implies a range of steps a large edge provider could take to disadvantage an ISP relative to its competitors. With video becoming a rising priority of Internet giants like Google , Amazon, and Facebook , the issue of interconnection fees and zero-rating services will remain important battlegrounds — with the current FCC actively supporting OTT-based competition.” Image provided by Shutterstock .