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Category: Investing

What a difference 9 years makes. On March 9, 2009, the market capitalization of Apple, Google (now Alphabet), Amazon, and Microsoft stood at $74 billion, $92 billion, $26 billion, and $135 billion. Their combined market cap: $327 billion. Data Source for all charts/tables herein: YCharts. 9 years later these four companies would grow to become the […]

We often hear that Gold prices are driven by real interest rates. Rising real interest rates are said to be bad for Gold because it increases the opportunity cost of holding the yellow metal. This makes sense intuitively as Gold pays no interest or dividend, and will therefore be less attractive as compared to risk-free […]

Value Investing and Tolerating Pain

So you want to be a value investor, like the great Warren Buffett. A worthy goal, to be sure. But before going down that road you may want to ask yourself the following question: What is my tolerance for pain? You read that word correctly: pain. To be a great value investor, or any investor […]

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Inflation! Deflation! Two words that strike fear into the hearts of investors. Are such fears justified? Let’s take a look… If we segment calendar year changes in the Consumer Price Index (CPI) into quintiles, we observe the following: The lowest equity returns have occurred in deflationary (quintile 1) and inflationary (quintile 5) environments. The highest […]

When Stocks and Bonds Go Down Together

High on the list of the greatest fears among investors is a scenario in which stocks and bonds go down together. Last week those fears were realized when the S&P 500 (SPY) suffered its worst week since January 2016 while long-term Treasury bonds (TLT) also declined. Source Data: Pension Partners, YCharts This was an unusual […]