A Quick Look at Banks

It’s been a challenging year for bank stocks, to say the least, as the COVID-19 pandemic began to take hold early on. The chart below shows a recovery from the March lows, but not at the pace of the market’s leading sectors.   Source: Bloomberg  ...
High Yield : Juice Worth the Squeeze?

High Yield : Juice Worth the Squeeze?

Investors that took advantage of the blowout in credit spreads back in March have seen incredible gains from the bottom. The credit markets experienced a liquidity freeze like never before, prior to the Fed’s announcement of off-balance sheet facilities. Established...

Q3 Earnings Recap: Don’t Bet Against America

It’s not often that earnings season takes a back seat to other global events, but that was the case in Q3 2020 as the US election, increasing COVID-19 cases, a potential vaccine, and fiscal stimulus have been sucking up all the oxygen in the room recently. But let’s...

Stimulus: The New QE?

When Quantitative Easing (“QE”) was introduced to the markets by the Fed back in the Financial Crisis, we believe it quickly became THE influence on stock prices, displacing traditional metrics such as earnings, earnings growth, and valuation. To that point, in the...

What Can We Really Expect From Bonds?

2020 has been a roller coaster for both fixed income and equity investors. As of Oct 28, the Barclays Aggregate has outperformed the S&P 500 by over 300 basis points year to date… but it has been a volatile ride. Source: Bloomberg Looking back to Mid-March, from...

Taking Charlie Munger’s Advice

“Diversification is protection against ignorance. It makes little sense if you know what you are doing.” Warren Buffett Mr. Buffett has a way with words, and has clearly earned respect for not only accumulating massive wealth but for his folksy wisdom. But...