Category: Equities

 “Markets don’t crash from all-time highs.” This old saying is making the rounds again. Why? The Dow just closed at an all-time high for the 8th consecutive trading day and 34th time in 2017. That’s a lot of all-time highs, and it comes after the 122 all-time highs in 2013-2016. We haven’t seen this many […]

The Best of Times

It is the best of times. The age of wisdom. The epoch of belief. The season of Light. The spring of hope. We have everything before us. Source: The financial markets have become a tale of one city, a utopia in which the streets are paved with risk-free reward. Try to remember the air […]

Irrational Optimism

In the months following the election, we saw optimism surge higher in a number of prominent indicators… Homebuilder sentiment hit an 11-year high. Small Business optimism hit a 12-year high. Consumer confidence hit a 13-year high. Philadelphia Fed Manufacturing survey hit a 33-year high. The thinking was as follows: a new era of higher economic […]

Innovate or Die

Back in January 2007, Netflix announced a bold plan to bring internet video to television sets. At the time, few believed they would be successful, but such skepticism was nothing new. The “death” of Netflix was predicted first in late 2002, not long after its IPO. Wal-Mart was entering the DVD-by-mail business, and who could […]

Fast Food, Slow Thinking

Investing: “It’s not supposed to be easy. Anyone who finds it easy is stupid.” – Charlie Munger Over the past 2 years, McDonald’s stock is up over 70% while Chipotle’s is down 38%. Was this expected to happen? Not exactly. In July 2015, Chipotle’s stock had advanced 70% over the prior 2 years while McDonald’s […]