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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Investing

Like Moths to Flames

With each passing week, the conversation about stock market bubbles feels like it’s intensifying. I’m not really sure if that’s true but if feels like it. It actually just might be that a few people are becoming increasingly outspoken. Naturally, the conversation has progressed to bubble talk as the stock market has continued to climb …

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Investing

Bitcoin Mania!

The recent run up in Bitcoin has been nothing short of crazy. I mean it’s doubled since the first part of November! I’m not going to pretend I know for certain why it has run up so quickly but I have to imagine increased institutional interest along with Square’s and Paypal’s announcements last month have …

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Investing

What is Sentiment Telling Us About the Market Right Now?

Sentiment is possibly the most important element of investing in stocks. We all get caught up in valuations and fundamentals, which are important, but valuations can become inexplicably extreme in either direction for longer periods of time than we might anticipate and unjustified fundamental expectations can be construed in any light to support a narrative. …

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