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Invest
Social media users claiming to be Bougie Broke share pictures of their fancy cars, high-fashion clothing, and selfies in exotic locations and expensive restaurants. Yet they complain about living paycheck to paycheck and lacking the means to support their lifestyle. Bougie broke is like “keeping up with the Joneses,” spending beyond one’s means to impress […]
Daily Market Commentary
It’s not just a handful of AI-related stocks that signal a speculative investment atmosphere. Many other stocks and markets are exhibiting similar behavior. For instance, Bitcoin and junk-rated corporate bonds show complacency and wild speculation. While both markets are inherently very different, traders and investors of bitcoin and junk bonds tend to behave similarly. The […]
Invest
After over two years, retail investors, also known as the “dumb money,” are almost back to breakeven. A recent chart by Vanda Research shows that the average retail “dumb money” investor portfolio still sports a drawdown despite the markets making new all-time highs. Such is unsurprising, given that retail investors often fall victim to the […]
Daily Market Commentary
The implied volatility index (VIX) calculates the future volatility that option traders expect. The VIX tends to rise as stocks decline. At such times, investors are often more aggressive in hedging their stocks with options. Conversely, when markets are increasing, the demand for insurance tends to wane. Further, imparting downward pressure on the VIX, some […]
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Apple’s valuations are near their most expensive levels of the last ten years. Now consider that today’s valuation premiums are amidst a much higher risk-free bond yield than during most of the previous ten years. Apple has a market cap of $2.8 trillion. Assuming its price-to-earnings ratio and margins remain stable, Apple must sell nearly […]
Daily Market Commentary
As we noted in our current Weekly Newsletter, Conference Board Scraps Its Recession Call, the Conference Board, publisher of the well-followed leading economic indicators (LEI), has rescinded its recession prediction. As we wrote: “According to the Conference Board, the reason for the retraction of the recession call was the improvement in underlying indicators.” While it’s […]
Daily Market Commentary
The Bloomberg graph below provides us with a reason to be optimistic about the earnings and share prices of the largest corporations. As shown, the amount of cash corporations hold is at an all-time high and double the pre-pandemic trend. Large amounts of cash are a good thing for shareholders in today’s high interest-rate environment. […]
Daily Market Commentary
On January 23, we led the Daily Commentary with a couple of paragraphs titled Is Trueflation A Better Gauge Of Inflation? If you want to learn more about the benefits of the Trueflation inflation calculation versus the popular CPI index, check out the article. About three weeks ago, when we wrote it, the Trueflation inflation […]
Invest
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 […]