The Money Runner
SHUTDOWN!
By David Nelson, CFA CMTWith a government shutdown approaching DC politics continue to be a quagmire of pork and special interests. A dysfunctional Washington is hardly surprising but the 5,593 page $900 Billion Covid-19 Relief Bill probably hits a new low. The bi-partisan package was of course tied to a $1.4 Trillion government funding bill […]
Small Cap Rally Has Started – Maybe it never stopped
By David Nelson, CFA CMT After years of taking a back seat to large cap secular growth small caps have suddenly exploded higher catching the eye of investors. Caught off guard hiding in the safety of large companies with bigger and stronger balance sheets professional and retail investors are being forced to rethink portfolio alignment […]
Dow 30,000 – What could possibly go wrong?
By David Nelson, CFA CMT Tuesday November 24th the Dow Jones Industrial Average closed above 30,000 for the first time. That’s a long way from its first close of 40.94 May 26, 1896. Today’s Dow looks a lot different than the original 12 companies. Even General Electric (GE) was kicked out of the index in […]
What to expect for markets as we close out 2020
David weighs in on the markets and what to expect as we head into 2021
The Rule of 72
By David Nelson, CFA CMT Wall Street loves complex theories of why an asset class will outperform or head south. We tear apart income statements, balance sheets and parse every word from the FOMC. We run thousands of back tests on multi-factor quantitative models diving through virtually every data point that relates to a company, commodity, fixed […]
Rational Exuberance
Rational Exuberance – Coming into the week the spread between $QQQ and $RSP was 40% – Reversion to the mean is a powerful force
Red October
In the long run stocks care about cash flow, earnings, dividends and revenue in that order.
Biggest risk for the market – It’s not what you think
The truth rarely lives on the extremes. Unless we’re about to unwind hundreds of years of economic data and history, long term equity returns are driven by earnings, cash flow, dividends and revenue in that order
