Energy Costs = Inflation
https://youtu.be/ijLaes1lAJc Over the past 40 years, the rate of growth in inflation has fallen. A major reason for this disinflation was due to lower energy prices – especially natural gas. Today we are seeing a reversal in the cost of energy, which could lead to a pick up in inflation.
Bonds – Credit Risk is getting to an Extreme!
https://youtu.be/3vadv_sQbUc THOR’s credit risk model is sending a cautionary signal. This at a time when bond spreads are historically narrow (i.e., 1999 and 2008) and covenants are non-existent. Is your bond portfolio taking too much credit risk today? Watch our market update video to learn more.
U.S. Corporate Profit Margins Going Down?
https://youtu.be/K4byF8rkGTwCorporate profit margins are at all-time highs. The stock market is also trading at all-time high levels. There are two items that could derail these levels: inflation and higher interest rates. Watch our video to learn more.
US Stock Market – 1999 or 1970s?
https://youtu.be/knI94rRYrTw There are a lot of people comparing the US stock market today to that of 1999. Today there are two significant differences from that time period. In this video we will discuss these differences and why we believe the 1970s may provide a more accurate comparison.
Active vs. Passive II: US and International Stocks
https://youtu.be/n1rbdiIY4Dk Is it better to have active management than passive management (index funds)? It depends. In our previous video on the topic of active vs. passive management, we discussed some of the differences when investing in fixed income. This video highlights why we like active management (over index funds) in US and International equity markets […]
Market Sentiment – Irrational Exuberance?
https://youtu.be/XEX4vkZzKcY Every market time period is different, except for one critical thing – human emotions. Investors buy more when they are optimistic and sell when depressed. They usually make these investment decisions at the wrong time. Watch our video to see what sentiment indictors are saying about today’s market.
Corporate Voting – Is Exxon the Tipping Point?
https://youtu.be/32l0Z8Be0wk One major concern over the years has been the concentration of corporate voting power to large investment firms. The recent proxy vote where 3 new activist board members were elected to Exxon’s board demonstrates the influence these firms can have. Blackrock (and Larry Fink) have become one of the most powerful companies in the […]
Mid-Year THORdex Update
https://youtu.be/VIhyAyRUd6I Our THORdex currently has a reading over 80, which is pointing to higher levels of risk in the US stock market. Warren Buffet’s indicator which compares Total US Market Capitalization vs. GDP, shows that US stocks are at all-time highs. While valuations and risk are high in US stocks, we still see compelling valuations […]
Stock and Bond Yields – Not Enough To Live On!
https://youtu.be/bapRbVp1giAThe “real” yields for both bonds and stocks are negative. The last time that both stocks and bonds generated negative real yields was back in early 70’s. Investors cannot just rely on yield to generate income. THOR understands this dilemma and believes portfolio’s need to be more dynamically managed to maintain appropriate withdrawal rates.
Inflation – Up, Up and Away!
https://youtu.be/NCMKL4Qp8HoThe inflation numbers released by the government last week shocked many, but not us. The Federal Reserve has grown the money supply faster than any time in our history. Prices of lumber (and most commodities we use daily) are up significantly over the past year. One well known commodity hasn’t participated. Listen to find out […]