In our last article we covered the Bubble in “Safe” Stocks, where investors are paying outrageously high multiples for companies that are believed to be more recession resistant such as consumer staples.  In this article I figured I’d cover a stock Mr. Market and the doom and gloom propagandists view to be “risky” based on...Read More

This weekend, Warren Buffett’s Berkshire Hathaway holds its annual meeting where investors flock to Omaha Nebraska to listen to the valuable insights offered by Buffett and his partner Charlie Munger.  It’s a great time to reflect on why these investors have been so successful and how it can be applied to our own investments.  Today,...Read More

  Last week for Spring Break, I had the good fortune to take my family to Miami and then on a cruise to the Eastern Caribbean.  It was a great experience with many memories made.  On our first day, I took my two daughters to South Beach where we went swimming in the waves, which...Read More

Markets continue to exhibit higher volatility due to economic data that indicates that higher for longer Federal Reserve interest rate policies are more likely.  At TTCM, we view predicting macroeconomic data as being a rather pyrrhic enterprise, as success rates for even supposed experts, are far less than 50%.  By focusing on individual securities and...Read More

Volatility has begun to pick up in equity markets as bond yields have continued to creep higher, based on fears of higher for longer inflationary pressures.  I’ve warned before about being too aggressive in this environment.  Too many people expect equity markets to perform like they did in exceptionally low interest rate periods and that...Read More

  “You don’t find out who is swimming naked until the tide comes out.” Warren Buffett   Financial markets over the short-term are akin to middle school popularity contests.  The euphoria or pessimism of the day generally reflects recent price performance.  Because there is 24/7 coverage, media pundits feel like they have to give reasons...Read More

Today’s higher than expected August CPI report, rattled the market dramatically, causing the Nasdaq to drop by 5.2%, the S&P 500 by 4.3%, and the Dow to drop by 4%.  This was the biggest down day since June of 2020 and the 8th daily decline of greater than 3% on the year.  The recent decline...Read More

Today there were headlines that one of the premier growth funds, Tiger Global Management is down 52% this year.  This has been one of the hottest funds of the last decade, buying the flashiest growth stocks with little regard to valuations.  Tiger’s aggressive strategy was richly rewarded over the last few years while value struggled...Read More

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...Read More

I’d like to draw your attention to the images above.  The graph on the left highlights the sharp divergence between momentum growth stocks and value stocks.  That is a 55% divergence and is one of the most shocking divides between growth and momentum in history, if not the most.  The only comparable is during the...Read More