Category: Invest

A funny thing about bull markets is that investors develop a very short memory about the previous bear market. Such is why cycles repeat throughout history as lessons must be learned and relearned.

Over the last four quarters, Tesla generated total revenue and earnings of $96 billion and $15 billion, respectively. Toyota’s revenue and earnings are roughly three times larger at $299 billion and $44 billion. Yet Tesla’s market cap is more than double that of Toyota.    Tesla shares have soared since going public, while Toyota and […]

While the bulls remain entirely in control of the market narrative, divergences and other technical warnings suggest that becoming more cautious may be prudent. In January 2020, we discussed why we were taking profits and reducing risk in our portfolios. At the time, the market was surging, and there was no reason for concern. However, […]

The cost of housing remains a hot-button topic with both Millennials and Gen-Z. Plenty of articles and commentaries address the concern of supply and affordability, with the younger generations getting hit the hardest. Such was the subject of this recent CNET article: “The housing affordability crisis means it’s taking longer for people to become homeowners […]

A funny thing about bull markets is that investors develop a very short memory about the previous bear market. Such is why cycles repeat throughout history as lessons must be learned and relearned.

We wrote this four-part inflation series in response to the graph below, implying that prices are on the same inflation roller coaster ride as the 1970s. If you have read the first three parts of this series (ONE, TWO, and THREE), you have a better appreciation for some similarities and differences between inflation of the […]

In September 2021, I discussed how the markets had set its sights on the S&P 500 index hitting 5000. To wit. “Yes, the rally off the COVID-19 bottom in March 2020 has been extraordinary, but we think there are further gains ahead. Solid economic and corporate profit growth, in conjunction with a still-accommodative Fed, means […]

As the financial markets grind higher, retirement savers have consciously decided to add more to equity risk. Such was the result of a recent Bloomberg survey. “Retirement savers want more stocks in their portfolios as a hedge against inflation, potentially offering a long-term tailwind for equities as societies age, according to the latest Bloomberg Markets Live Pulse survey. Almost […]

Part One of this series led with a graph from Apollo Global Management implying that we are embarking on an inflation rollercoaster for the next ten years, similar to the experience of 1965 to 1982. Parts One and Two explained the causes and remedies for that prolonged inflation outbreak. The links are below. Part One […]