News

Higher than expected inflation and geopolitical turmoil have begun to roil the equity markets of late, wiping out $1.3 trillion in value last week alone.  This past week, the S&P 500 declined by 3%, recording its 3rd consecutive week of declines.  The Nasdaq declined by 5.3%, which was its worst week since October 2022.  Many...Read More

Due to the rapid ascension of interest rates over the past two years, commercial real estate has seen a considerable decline in prices.  Different sectors of the commercial real estate market such as Office, are clearly more troubled.  However, areas such as multifamily, industrial, and retail are performing much better at an underlying business level. ...Read More

Legendary investor Warren Buffett has previously referenced the “Buffett Indicator” as his favorite metric for a general overview of the optimism or pessimism priced into equity markets.  The Buffett Indicator measures the size of the U.S. stock market against the size of the economy by taking the total value of all publicly traded companies (measured...Read More

Earnings season has begun with very positive results shown thus far from the big banks, albeit a small sample size.  I’ll be posting a lot of commentary on the market and specific investments as these results continue to come in.  While there is tremendous uncertainty in so many areas, it is important not to let...Read More

I’d like to direct your attention to the two images at the top, which were brought to my attention by a friend of mine in the industry, Tobias Carlisle.  The first chart shows the compound returns of the highest 10% price to cash flow stocks (glamour) and the lowest 10% price to cash flow stocks...Read More

At T&T Capital Management, we avoided the massive losses most investors took from buying bonds at the incredibly low yields that prevailed over the last 15 years.  It was really simple, the interest rate risk wasn’t worth it, regardless of the ridiculous cookie-cutter asset allocation models that most financial advisors use, which almost always must...Read More

The top 10 stocks in the S&P 500 now account for more than 1/3rd of the value of the S&P 500.  Valuations in this group are vastly elevated compared to their historical levels, highlighted by Nvidia trading at a staggering 41 times sales.  It’s hard not to compare today’s environment in the large cap Technology...Read More

Today I had the opportunity to do the podcast Value After Hours with Tobias Carlisle and Jake Taylor.  We discussed current market valuations, the banking “crisis”, the opportunities we are finding in high-yield bonds, ALLY Financial, etc.  I hope that you enjoy!   Podcast VideoRead More

Today I was reading an interesting article in the WSJ describing the increased risk-taking that many retirees and near-retirees are taking with their investment portfolios.     For instance, “nearly half of Vanguard 401(k) investors actively managing their money and over age 55 held more than 70% of their portfolios in stocks.  In 2011, 38% did so.  At...Read More

The YTD rally in the S&P 500 has been dominantly comprised from the performance on the top 8 stocks, all of which performed poorly last year.  This is by far the narrowest rally since the Tech Bubble, which ultimately culminated in an 80% drop in the Nasdaq.  These stocks are so big and comprise such...Read More