The FAANGs have evolved to FANTAZIAM: Facebook, Alphabet, Netflix, Tesla, Amazon, Zoom, Internet stocks, Apple and Microsoft. This whimsical investment world is aptly described by the classic Disney movie, Fantasia. Insider sales are overwhelming buys among these stocks while the overall market insider buy/sell ratio sits at a 12 year low. Valuations also scream sell […]
Investing based on expected political outcomes is a crapshoot at best. What really matters is the destruction of the dollar. The Presidential candidates and both major political parties will follow the same script. History shows that currency destruction also devastates equity markets. Smart investors will position their portfolios with assets that do well in this […]
Many factors have weighed on natural resources equities, and the sector has been beaten down for a long time. There is significant likelihood of reflation and a dollar decline due to massive fiscal and monetary stimuli. Natural resources equities are a proven vehicle for portfolio diversification and positive upside under these scenarios. The FlexShares Morningstar […]
These are unreal times. There is substantial risk of reflation and significant dollar devaluation due to recent and anticipated additional fiscal and monetary stimulus. Natural resources equities represent ownership in longstanding, successful businesses that produce real assets that are essential to our life. This article explores key reasons investors might consider natural resources equities as […]
Recently my nephew, who is an Executive VP of a large bank and a Certified Financial Analyst, sent me an email saying: “The stock market is insane. I have to throw away my Intelligent Investor book. It is no longer a market.” That and the recent market rebound of more than 25% prompted me to revisit my […]
Emerging Markets (EM) equities are down 22% YTD, with the EM small cap value sector decimated, down 28%. However, the long term Case for Emerging Markets Small Cap Value is still in play and arguably even stronger. Based on screening across many factors, the Wisdom Tree Emerging Markets Small Cap Dividend ETF (DGS) is […]
Recently a friend sent me an email asking, “How far does the stock market have to fall until you would say it is in neutral territory – that is, neither overpriced nor underpriced?” The market is displaying wild day to day swings and is exhibiting classic emotional behavior. To attempt to get a handle on market […]
Summary Emerging markets (EM) small cap value is an attractive asset class for long-term, value-oriented macro investors. EM equities and particularly EM small cap value, have lagged for the past ten years and are poised for a return to their longer-term strong performance.Investors need to carefully weigh coronavirus, ESG, financial reporting, currency, political and trade […]
My last article, “Mean Reversion + Valuation = Opportunity” cited eleven asset classes that have opportunity for outperformance in the coming decade. That led me to ask: Can portfolios constructed with these out of favor assets provide superior returns? Specifically, I wanted to know: How have Contrarian Portfolios performed over long periods when no mean […]
U.S. equities are near their highest levels in history, based on valuation metrics. This suggests meager returns of 4-5% per year over the next decade.However, based on reversion to the mean and attractive valuations, there are several attractive asset classes.U.S. value, international, emerging markets, natural resources, MLPs and gold present opportunities.These assets have the potential […]