Is it Time to Go Solar?

SolarCity is up by more than 535% since its IPO. Since the company is still reporting losses, it's easy to think that its stock is expensive. However, there are some unique challenges to understanding what SolarCity is worth. Here are two issues to consider when trying to value the stock. Reported earnings versus reality In 2008, … Continue reading Is it Time to Go Solar?

All About Dividends

When it comes to stock investing, conventional thinking dictates that returns are all about capital appreciation.  However, for many investors, price appreciation may not be the main driver of total return at all.  In fact, dividends can constitute a larger portion of total returns than many people may realize. Dividends Overlooked According to Loomis Sayles, … Continue reading All About Dividends

Dangers of High Yield Hunting

Fixed income investors that were accustomed to earning 5% on a portfolio of government bonds are now getting 2% for the same securities. The steep drop has interest starved investors hunting for yield. As usual, the easiest way to increase yield has been to increase risk, and investors have taken the path of least resistance. … Continue reading Dangers of High Yield Hunting

Russia Looks Rich & Cheap

In the previous post, I made the long-term case for commodities. In this post, we'll consider an indirect way to get exposure to them. It's common knowledge that emerging market economies tend to be correlated with commodity prices. That's because emerging markets are often dependent on the export of natural resources, making them "banana republics," … Continue reading Russia Looks Rich & Cheap

Cold, Hard, Commodities

The broad commodity markets have been uneventful over the past two years.  While some commodities have outperformed others, and windows of volatility may have been good for trading, the broad commodity markets ended up down in both 2011 and 2012.  That being said, commodities should be attractive from a long-term perspective.  The reasons are straightforward.  Natural resources like oil, metals, … Continue reading Cold, Hard, Commodities

Latest Investor Letter

BCM is pleased to share its latest Investor Letter with you.   Client letters provide BCM's perspectives on economic and market conditions.  You may access an archive of letters and other content at BCM's website, http://www.bellwethercm.com. The BCM Team This blog is for informational purposes only. Nothing on this blog constitutes investment, tax, or legal advice. … Continue reading Latest Investor Letter