Tag

Value Investing
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’ve been writing a lot about elevated valuations for equities and the absolutely horrid risk/reward in almost all bonds.  I’ve kept the same graphics at the top of this email for the last month as I want to emphasize the importance.  We’ve also covered inflation, which is rearing its ugly head, with the September PPI...
Read More
Today the Case/Shiller housing price data came out and it showed prices up nearly 20% YoY. Brent crude oil touched $80 per barrel and is on course for its best month since February. Treasury yields have risen quite dramatically over the last week, with the 10-year now above 1.5%, the highest since June.  Natural gas...
Read More
Rob Arnott of Research Affiliates is one of the best investment strategists around. He wrote a fantastic article on the opportunity in value investing, so instead of going on about it, I’m just going to let you read it to get a good grasp of the opportunity in front of us.  Here was one quote...
Read More
Global markets have sold off pretty hard to start the week.  Most of the narrative surrounds the Chinese property market and one of their largest developers, Evergrande.  China’s government is clamping down on leverage and demanding many industries to buy in, literally, to their social objectives via cash “donations”, cheaper housing, etc.  Both the Shanghai...
Read More
  Interest rates are without a doubt one of the most important drivers of investment returns, if not the most significant.  Warren Buffett has mentioned in the past that there is almost a reverse gravitational impact of interest rates, in that lower rates tend to raise equity valuations.  Conversely, higher interest rates tend to pressure...
Read More
    The image above shows the S&P Growth/Value ratio. As you can see, this ratio has hit a new marginal high, to an all-time record.  This means that the valuation spread between growth and value has never been more extreme.  Interestingly, we saw a similar pattern occur in 2000, right before the Nasdaq began...
Read More
We are beginning to see a bit of increasing volatility in equity markets arise, as concerns around Covid-19 and the Delta variant have caused increases in positive test results and restrictions, albeit on a far smaller basis than what occurred last year.  We’ve been writing about the market getting a bit ahead of itself for...
Read More
Wall Street, like many other industries, is designed to sell you what you think you want. It is like a candy store offering you a wide variety of delectable offerings, that while tasty, might not be best for your health.  Good investments don’t need massive promotional campaigns to sell prudent investors.  Usually a paragraph or...
Read More
2020 was a truly unique year from a stock market perspective in that the most expensive stocks got more expensive, while the cheapest stocks got cheaper.  All of this was in spite of the year starting with the spread between value and growth already at near-record levels, with many astute investors betting on mean reversion. ...
Read More
1 2 3 102

Recent Comments

    7242 East Cortez Rd
    Scottsdale, AZ 85260
    Phone: 805-886-8140
    Fax : 949-335-9784