Long and Short of Value

THE DEATH OF VALUE The death knell for "value-investing" has rung many times over the years. And after a decade of lagging explosive growth stocks (like "FAANGMAT") it rings louder than ever. The divergence between growth and value has reached historical levels and now looks even more stretched than during the 1990s dot-com boom. Is … Continue reading Long and Short of Value

Digging Deeper for Energy

Both the ACWI and the S&P 500 gained more than 20% in 2017.  US stocks continue to look expensive.  Of course, that doesn't mean they can't continue to climb -- they've looked expensive for several years.  But 2018 may be the year to be more selective. The table below shows the trailing P/E ratios for … Continue reading Digging Deeper for Energy

Going Nuclear

Back in October of last year I wrote nuclear power was a promising source of alternative energy. I also promised to write more on the topic.  Last month I shared my thoughts in  BCM's latest Investor Letter (A Bright Future), I'll reiterate my thoughts here. The simple fact is we need more energy than we have … Continue reading Going Nuclear

Looking for Bright Spots

Seems like everybody hates solar stocks.  They're down big, but with reason.  Earnings have been dismal and financials have been deteriorating. Prominent names like Solar City and Sun Power are simultaneously burning through cash and piling up debt. Adding insult to injury, two years of capitulating oil prices have softened demand for alternative energy.   … Continue reading Looking for Bright Spots

Fitting the Earnings Shoe

The first quarter started with a bang but ended with a thud.  The US stock market was basically flat and the bond market was modestly up.  The widespread global recession rhetoric seems to be quieting. This is particularly true in the US where we have been pointing out economic conditions are not as bad as … Continue reading Fitting the Earnings Shoe