Greek Lightning Strikes

Much ink has been spilled over Greece's financial woes.   And if you've followed the headlines, you might think Greek lightning was burning Athens to the ground.  While it's true that Greece's finances have been woefully mismanaged (it has the second highest Debt/GDP ratio in the world), in absolute terms things may not be as … Continue reading Greek Lightning Strikes

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

Valuation Conundrum

US equity market valuation is puzzling. With the S&P 500 priced at 24x trailing earnings, stocks look expensive and long in the tooth -- the market has persistently traded above average valuation levels since 2013.  Meanwhile, economic conditions have been, at best, lackluster over the same period.  As earnings and the business cycle inch towards … Continue reading Valuation Conundrum

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

Full Swing Voting

Following a choppy third quarter, global markets have made a comeback.   Since October 1, the S&P 500 and EAFE have both rebounded over 5%, and emerging markets have bounced by more than 8%. Strangely enough, the same fears that stoked the sell-off also seem to be fueling the rally.  Investors who disliked the uncertainty … Continue reading Full Swing Voting

Looking Abroad

With about every major US equity index making new highs, many investors are nervous about US stocks.  I don't know if there's an impending stock market crash, but regardless at BCM we favor foreign developed market equities for the time being.  Here are a few reasons why. Western Europe appears to be trailing the US … Continue reading Looking Abroad

Anything and Everything for Russia

Today S&P announced it cut the credit rating on Russian sovereign debt to junk status.  The Russian equity market slid about 8% on that news, but the damage wasn't as bad as some may have thought. That's because the downgrade was widely expected, and of course, the Russian market is already down more than 60% … Continue reading Anything and Everything for Russia