I stumbled upon a fantastic article about the Tech Bubble and I wanted to share a few key points with you.  This is relevant because current market valuations appear to be very stretched by most metrics.  After an extremely strong 2019 and nearly an 11-year old bull market, investor optimism is quite high.  It is...Read More

Warren Buffett in July, 1999: “If I had to pick the most probable return over the next 20 year, it would be 6%.” Gallup poll in 1999: “Investors expect stocks to return 13-22% annually.” S&P avg. return from 1999-2019: 6.117%. (Source: Vetle Forsland)   As hard as it is to believe, another decade is coming...Read More

There has been a tremendous amount of news over the last few weeks with the phase 1 trade deal with China, progress on the successor to NAFTA, and the Tories winning in the UK by a wide margin.  We don’t want to overthink individual political or economic data-points, which is a mistake that far too many...Read More

Over the weekend, I was reading Barron’s, and there were numerous articles about obtaining enough income in retirement.  The recommendations vary from buying dividend stocks, annuities, and/or bonds.  All of these strategies offer various challenges and risks.   Buying dividend stocks offers income and the potential for capital appreciation.  The problem is that many of these...Read More

There has been a great deal in the news about the office-sharing company WeWork, which rose to prominence over the last few years, as revenue grew rapidly and its outspoken CEO made headlines.  WeWork, and other formerly private enterprises such as Uber and Lyft, gained notoriety by obtaining higher and higher valuations from accommodating capital...Read More

Historically, it has made reasonable sense for retirees to have a sizable allocation to bonds.  A minimum of 40% was certainly not uncommon.  The logic behind this was that retirees regularly draw from their accounts and are less comfortable with the enhanced volatility that stocks can at times provide.  The supposedly steady income from the...Read More

It appears that the United States and China have tentatively reached a partial agreement on trade.  Basically, the U.S. would pause further tariffs, while China would agree to agricultural concessions among other things.  Markets have rallied on the news, with stocks moving materially higher and bonds dropping, meaning yields increasing.  I think this is clearly...Read More

One of the hot stocks over the last few years has been Netflix.  Clearly, the product has been extremely successful across the globe, as the company has experienced strong subscriber growth.  As of July of this year, the stock was already up 40% for the year.  Despite the success of the product and the stock,...Read More

We at T&T Capital Management have been making the argument that the marketing and shift towards index fund investing, irrespective of valuation, is likely to lead to very serious problems in the future.  Every bubble arises out of a good story that gets carried too far.  Once valuations are seen as virtually irrelevant info, that...Read More

Continued pressure on bond yields and bad economic data out of China and Europe scared the market today, causing a 3% selloff.  While it is a large point drop, it would only qualify as the 342nd largest percentage drop in history.  Stocks got off to a torrid start to the year and it shouldn’t be...Read More