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Banks
Value After Hours S04 E27: Small Value is Quality, Energy in Food, Financials and the Consumer  
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Last week we wrote to you about when to expect bear markets to end and we touched on the first day of big bank earnings.  Well, since then we’ve gotten earnings reports from Citigroup, Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs, and Ally Financial.  These companies have access to an enormous amount of...
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When you are in the midst of a bear market, all the news is bad.  You are usually either in or about to be in a recession. Analysts that kept telling you to buy stocks at 50% higher prices, now tell you to sell the same stocks despite them being dramatically cheaper.  Economic data gets...
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Equity and bond markets had a brutal week as today’s CPI report confirmed that inflation has accelerated to a 40-year high, which has traders speculating that the Fed will have to raise rates faster than expected.  In addition to that data, we saw the lowest Consumer Confidence number in the surveys history, which dates back...
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2022 is shaping up to be quite the crazy year.  While this horrible war in Ukraine dominates media headlines, I can’t help but feeling like inflation might be the dominant theme of the next decade.  Using “government” numbers, inflation is running at about 7.9%.  Shelter is the single biggest component of CPI at 33% of...
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In our last newsletter written on Friday, we wrote about just how much risk market participants are having to take to target a 7.5% return, mostly due to how low yields are on bonds.  The bailout has been that equity markets have performed exceptionally well, but of course now we are starting at valuations that...
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I’ve written quite a few times about the Tech Bubble that currently exists in the U.S. stock market.  No stock better epitomizes this madness than Tesla.  Over the last 12 months, Tesla generated $24.578 billion in total revenue and generated EBIT (earnings before interest and taxes) of negative $69MM.  Tesla’s market capitalization is a staggering...
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I’ve been writing to you for quite some time about the massive paradox between growth and value stocks.  The largest growth companies have become so big that they now represent the largest portion of the indices in history.  Conversely, value stocks have remained in the penalty box and are trading at very cheap valuations.  The...
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Volatility is picking up once again, which we should expect given the extreme conditions the world is seeing.  Yesterday, the Federal Reserve chair said that interest rates were likely to stay near zero through at least the next year or so.  I don’t see that as surprising whatsoever, given the focus will be on reducing...
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The Covid-19 health crisis continues to evolve globally, and slowly we are learning more about the virus.  There have been quite a few serology studies in various regions of the country, where they are examining how many people possess Covid-19 antibodies.  The results of the studies seem to indicate that the true number of infected...
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