US equities bounced hard off their March lows. The disconnect with fundamental data has many intelligent investors trying to explain the rally with acronyms like FOMO and TINA. But the best explanation may come from the original Intelligent Investor Benjamin Graham who said, "in the short-run, the market is a voting machine, but in the … Continue reading Stupid Acronyms
An excerpt from my article published at SeekingAlpha.com. We just experienced one of the fastest bear market drawdowns in history and the S&P 500 was down -36% from peak to trough. Since then, we've also had a quick bounce of +27%. The whipsaw has everyone guessing if the stock market bottomed in March. Of course, … Continue reading A Hopeless Bottom
MARKET SUMMARY After a strong 2019, global equity markets made an abrupt move to the downside in the past month. Most major stock markets have officially entered into bear market territory and are down between 20% to 30%. Figure 1: Global Equity Markets YTD Price Returns With markets already uneasy about slowing economic conditions, the … Continue reading When Boring is Better
An excerpt from my article published at SeekingAlpha.com. Last month, I wrote a piece on coronavirus and China. This month it's clear COVID-19 has become a global concern. While people all over the world are still grappling with the viral pandemic, markets are overcome by a fear pandemic and already in correction territory. Markets are … Continue reading Fearing the Pandemic
An excerpt from my article published at SeekingAlpha.com. Fear is in the air It used to be "when America sneezes, the world catches a cold," but recent market action shows China may be the new snotty-nosed kid on the block. I mean the now-notorious coronavirus. Since its outbreak, the news flow has been frantic and … Continue reading When China Sneezes…
Stocks are set to close on a great 2019. Year to date, global stocks are up well over 20%. US stocks have led and are making new all-time highs along the way. Fed Chair Powell has suggested no more rate hikes in 2020 and President Trump announced a "phase one" agreement in the US-China trade … Continue reading Full Circle
I've been asked several times what will cause the next major bear market, what's the proverbial "next shoe to drop?" In 2018 some thought Bitcoin's collapse would be it and this year some are pointing at passive investing. While I think these issues could exacerbate market swings, that's different from saying they will be the … Continue reading Heavy Shoes for the Holidays
An excerpt from my recent article published at SeekingAlpha.com. Passive investing has enjoyed a tremendous rise in interest and popularity from investors over the past decade. Following that rise, the number of passive investment products, like index funds and ETFs, has also taken off. So much so that some fear passive investing is the next … Continue reading The Big Short, Part Deux?
An excerpt from my recent article published at SeekingAlpha.com. Pakistan goes back some 5,000 years and has a storied history of assimilating European, Asian, and Arab influences over millennia. Today, Pakistan has an equally interesting future that should be promising, but it's also debilitated by some serious problems. In this article, we'll unpack what's right and … Continue reading Unpacking Pakistan
Bulls running high Markets exhaled a sigh of relief following the US-China trade truce and US stocks are retesting all-time highs. Like I wrote earlier this year, the new-highs are not a surprise and there could be even more upside if Chairman Powell delivers on anticipated rate cuts. Ironically, these new highs could signal a topping … Continue reading Burning Out
"Investing should be more like watching paint dry or grass grow. If you want excitement take $800 and take it to Las Vegas " - Paul Samuelson. Spoken like the Nobel Laureate he was, Dr. Samuelson's simple, timeless words of wisdom resound true until this day. Long-term investors should focus on fundamental data rather than … Continue reading Paint, Grass, and Data
It's the 19-year anniversary of the dot-com bust, and ironically markets are again awash in a deluge of fantastic IPOs. This time the fantasy has gone next level and involves a stampede of mythical unicorns. During the dot-com boom, it was unthinkable to value a pre-IPO company at over $1 billion (a unicorn). But as … Continue reading Chasing Unicorns
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