Warren Buffett famously described the stock market as “a device to transfer money from the impatient to the patient.”
It’s one of Warren Buffett’s best-known sayings: “Be fearful when others are greedy and greedy when others are fearful”.
There’s a tendency among investors to conflate exposure to the S&P 500 with exposure to the broad market, even though these stocks are almost all large caps.
Late last year, investors who were clinging to the hope that inflation might be temporary took solace in the fact that real Treasury yields remained negative, a sign that bond investors might not be that worried about inflation.
While conventional wisdom says that rising interest rates are bad for stocks, it’s more accurate to say that rising rates tend to be bad for certain types of stocks.
Warren Buffett wasn’t kidding when he said, “nothing sedates rationality like large doses of effortless money.”
The start to the year has seen investors heading for the exits as an increasingly hawkish Federal Reserve begins winding down asset purchases and has signaled that it may start raising interest rates sooner and faster than expected.
A look at the predictive prowess of treasuries in gauging the stickiness of inflation.
The torrid rebound in the Consumer Discretionary sector calls for a selective response.
A look at two ingredients that make a meaningful impact on performance in the mid cap space.
A look at why investors may need a new playbook for the next phase in the fight against COVID-19.
A look at why investors may want to look beyond the alphabet soup of recovery trajectories while looking for opportunities.
How a growth-first mentality may be leading to a surge in unprofitable businesses.
The recent runup in valuations has reduced the margin for error in today’s markets.
A look at what Treasury yields may be telling us about where manufacturing is headed in the months ahead.
A look at how debt is leaving little margin for error in many companies.
A look at a passive fueled bubble in large caps and where opportunity may lie.
Investors may be missing some key warning signs in their pursuit of low volatility.
Equity prices and 10-year treasury yields are painting very different pictures about where the domestic economy may be headed.
By focusing on dubious growth projections instead of compelling valuations, investors are setting the stage for potential pain.
Is the style over substance era over?
A look at what politicians are overlooking in the story of share buybacks.
Strong performance during the period was welcomed, but we remain frustrated by the persistence of what we see as a bear market in logic.
A look at the tsunami of corporate debt that could swamp companies over the next five years.
A look at why investors should look beyond ever-changing short term opinions about the markets.
A look at how inflecting profit margins may ratchet up risk for borrowers.
A look at how low interest rates have led to a surge of money losing companies, and what that may mean as interest rates move higher.
A look at why piling into companies with margins at historic peaks could set the stage for disappointment.
Fewer analysts could lead to less efficient markets for small companies.
A look at how extraordinary items are making an all-too-common appearance in earnings reports.
A look at the last 15 years shows style leadership and the gap in performance may serve as an indicator of market direction for investors of all stripes.
The meteoric rise of a handful of stocks may have investors forgetting lessons learned from the tech bubble of the late 1990s.
Before declaring a winner in the battle of passive versus active management, investors may want to look at what is behind recent performance trends.
As growth/momentum begins to wilt under the weight of ever increasing expectations, value should once again attract investor attention.
Why companies may no longer be able to rely on reduced capital expenditures to boost profit margins.
History has been unforgiving for companies that bulk up on debt.
A look at what normalized price-to-earnings ratios are telling us about valuations overseas.
A wave of euphoria has hit the markets, but fundamentals could be key in the year ahead.
A look at why many companies are feeling the pain of higher rates even before the Fed acts.
Today’s income hungry world underscores the need to dig into free cash flow and payout ratios to avoid yield traps.