Investing

Wilting Growth?

Growth stocks have noticeably underperformed over the past few weeks as interest rate increases have accelerated. While painful to experience for growth investors, the drop shouldn’t come as a surprise after growth stock’s meteoric rise in 2020. The chart below is the ratio of the iShares Russell 1000 growth ETF (ticker: IWF) versus the iShares …

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Economics Investing

The Great Debate

I’ve heard many people say they write so they can sort out their thoughts, learn something and ultimately arrive at what they think about a specific topic. That’s what I’m attempting to do today. One of the great debates currently in  the world of economics and investing is whether we’re headed for a sufficiently higher …

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Investing

Democratization or Disruption?

A lot has been made of the Wall Street Bets/Gamestop saga. The whole episode was quite extraordinary and entertaining, at least from my perch. Financial markets are always evolving. Over the past 20 to 25 years, the evolution has favored smaller investors with the move from fractions to decimals in 2000 to the ongoing compression …

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Economics

MMT

Modern Monetary Theory (“MMT”) has become increasingly popular over the past several years. I recently listened to Stephanie Kelton’s The Deficit Myth to learn more about the rationale for MMT. Modern Monetary Theory claims that currency issuers (e.g., United States, Japan, Eurozone, etc…) don’t have to operate under the same restrictions as households operate. Households are required …

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Investing

Bubbly Peaks

After a remarkable run like we’ve experienced over the past two-and-a-half months, it’s natural to wonder if the good times will continue or if something more ominous is on the horizon. The end of 2020 greatly rewarded risk-takers in the stock market and may have even emboldened some to move out further on the risk …

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Investing

Divergence?

Over the past few months, we’ve observed a broadening of positive performance across all stocks contrary to what we experienced over the past several years where a few large cap stocks had largely driven stock index performance. Broader participation among stocks in market gains is generally considered a healthier dynamic than the alternative. From a …

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Investing

Leaving No Stone Unturned

It’s that time of year again. Everyone’s putting out their year-in-review pieces and 2021 outlooks. For me, 2021 re-enforced some of the most prevalent time-tested principles of investing. Three in particular stand out. First, having a long time horizon is essential to most investors’ success. I spoke with someone recently (we’ll call him Jack) who …

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