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bear market
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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  Today’s CPI inflation data came in hot at 8.3%, down slightly from the previous report, but higher than expectations. Inflation is rampant in all the key areas that impact our daily lives such as food, energy, shelter and transportation.  The sting of higher prices and the disruption emerging from the Chinese lockdowns has the...
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What a terrible month for the equity markets.  As I write this, the Nasdaq looks set to close down 12.% for April, which is its worst monthly performance since October of 2008, which was when we were seeing some of the worst developments of the Financial Crisis.  The index is now down more than 23%...
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The Nasdaq is now officially in a bear market as defined by a 20% decline from the highs, while the S&P 500 and Dow Jones indices are in corrections, with losses greater than 10%.  The Russian invasion of Ukraine and the economic sanctions brought against Russia in response are a major deal for the global...
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  I came across a very interesting article written by value investor and market historian Richard Pzena.  As you know, the closest comparison to the current market environment is the Tech Bubble, as the most expensive companies have seen P/E multiple expansion, while value stocks have seen multiple compression.  As you can see on the...
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As the economy reopens, cyclical value stocks are starting to perform a lot better. Remember, that what we experienced was something that has never happened before, with the major economies across the globe shutting down due to a virus.  I’d suggest the lock-down was more like the black swan rather than the pandemic, which are...
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Well, that was one awful week that we just had, for much of the world, and certainly in financial markets.  I know I feel like I aged a decade this week.  The stock market has been increasingly worried about this Coronavirus over the last few weeks, leading to increased volatility and large selloffs.  This, combined...
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2020 is shaping up to be a strange year.  This Coronavirus has a region in China, far larger in population than New York city, on a complete lock-down.  There are zombie cruise ships patrolling the waters in a state of full quarantine, with no countries wanting to take the risk of allowing them in to...
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As discussed in our last newsletter, value stocks have roared back strongly to outperform struggling momentum stocks over the last two weeks.  This is only two weeks, but it is worth discussing, because it augurs to how we see the market in the future.  How can we generate the returns we are targeting of double-digit,...
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On Monday August 5th, stocks plunged by about 3%, as escalating trade tensions continued to garner fear, after the worst week of the year last week.  The Chinese government is allowing their currency to decline, which benefits their competitive advantage on trade.  This was in response to last week’s news of additional tariffs on China. ...
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