Persistent Inflation Means Gold Will Continue To Shine
Is there a more hated asset than gold? Keynes called it a “barbarous relic”. Warren Buffett is famously not a fan of gold. And yet gold is working now precisely as it should as a hedge against inflation and excessive…
Tue Feb 4 Earnings Rundown: GOOG/GOOGL, CMG, PYPL, SNAP, MTCH
The big stock that reported earnings Tuesday afternoon was of course Google (GOOG/GOOGL). GOOG/GOOGL is of course one of the greatest companies in the history of capitalism. They own search on the internet through Google and that is not likely…
Two Investing Lessons I Had To Learn The Hard Way
Unfortunately in life sometimes we have to learn lessons the hard way through painful experience and failure. It would be nice if we could learn from other people’s experiences and books and not make the same mistakes that others before…
The Enduring Investment Principles Of Warren Buffett
I have recently been reading the 5th edition of The Essays of Warren Buffett edited by Lawrence Cunningham. Reading these excerpts from Buffett’s Berkshire Annual Letters over the years has been an extremely calming experience for me, almost a form…
STZ Earnings Selloff Prices In Mexico Tariff Concerns
Shares of Constellation Brands (STZ) are getting hit hard today (-17%) after reporting 3QFY25 earnings. The stock has been dealing with concerns about Trump placing 25% tariffs on imports of Mexican goods since Mexican beers like Modelo, Corona and Pacifico…
With Rates Rising Rapidly, Extreme Valuation May Now Be A Problem
Probably the most important development in financial markets over the last few months is the steep rise in interest rates. Since the Fed started cutting rates with a 50 basis point cut on September 18, the 10 year yield has…
Why Is The Fed Cutting Rates? Value In The Dating App Stocks, Homebuilders Breaking Down
The Fed is going to cut rates a quarter point on Wednesday – but it shouldn’t and it doesn’t seem like it wants to. The stock market is at all time highs, Bitcoin is over $100,000 and inflation remains stubbornly…
Why The S&P Will Drop 25% in 2025
It’s been a great time in the market with the S&P +31.46% over the last year. But – for a number of reasons – I suspect 2025 will surprise many in being a bad year with the S&P dropping 25%….
No Value In Stocks
When I used to play poker at Casino M8TRIX in San Jose before I moved to Davis, there was a dealer named Errol who liked to trade stocks using technical analysis. One of the stocks that he was bullish on…
BBY & DKS: A Tale Of Two Retailers
Two well known national chain retailers – Best Buy (BBY) and Dick’s Sporting Goods (DKS) – both reported earnings Tuesday morning. BBY shares are off 7% in reaction to their report while DKS is up 8% in reaction to its…