Stock Market Leadership is Changing
https://youtu.be/yvaAsiBgXLY We have seen a shift in market leadership away from the United States to foreign markets. Foreign stocks have under-performed US stocks for 10 years and we believe this shift will last for years to come. We believe emerging markets (EM) can be the best performing area in these markets… Why? There are four […]
The Moral Hazard of Corporate Borrowing
https://youtu.be/Fcof1kf0cyA Two years ago we cautioned about the ballooning corporate debt. Now with the virus, corporations are going on a debt issuance binge. Debt issuance is up 92% year over year. The Federal Reserve is only adding juice to the “juice bowl” by buying corporate debt for the first time ever. Excessive debt levels can […]
THOR on WCPO’s Cincy Lifestyle Show
Click above to see a replay of the segment.
Liquidity Problems and Rescue Packages
https://youtu.be/nGldGGp4DI4 Now that the $2 trillion rescue bill has been passed, we believe it will come with unintended consequences. Part of the bill includes the federal government getting ownership in companies and the Federal Reserve buying corporate bonds for the first time ever. 2008 had similar unintended consequences when bank trading desks were eliminated, which […]
Stock Market – Hit by a Virus!
https://youtu.be/9RICeh7Ux9A In our last update, we talked about market complacency. Needless to say, investors are no longer complacent with this recent market downturn. Because of this selloff, our THORdex has retreated a bit, but it is still elevated at just above 75. This is not like March 2009, when the THORdex was at 5. That […]
Investor Psychology: US Investors are Thrilled
https://youtu.be/XJ3ZMqcSiXk Investor psychology follows a very distinct cycle of optimism – to euphoria – to fear – to despondency and back to optimism. The stock market is one of the only market places where buyers are sparse when things go on sale and becomes crowded as things get more expensive, as it is today. We […]
Happy Thanksgiving: Don’t Make “Turkey” Investments
https://youtu.be/C7PG6wHwrX0 In the spirit of Thanksgiving, we want people to enjoy their turkey, but we also want them to avoid making “turkey” investments. Two years ago, the “turkey” investment was buying bitcoin when it was close to $19,000. More recently the “turkey” investment has been marijuana stocks that are down more than 50% in the […]
Today’s Technical Analysis: Market Divergence
https://youtu.be/LeF5OJaSOxs Technical analysis is simply a way to glean into the supply/demand characteristics of a market or security. Usually, the technicals and the market go in unison – technicals rise and so does market, technicals fall and so does market. However, there are times when technicals and price “diverge”. On the monthly S&P 500 Index […]
Hungry for Yield?
In a world where $17 trillion of global bonds are selling at negative interest rates and the 30-Year Treasury Note is yielding close to 2%, investors are searching for yield. The two areas that look attractive today are Business Development Companies (BDCs) and Mid-stream Master Limited Partnerships (MLPs). On the income alone, investors will double […]
THORdex Update: Stock Market Risk?
https://youtu.be/bFsmSiyIevk Today we will give you an update on the THORdex, our proprietary tool we use to measure risk in the US stock market. In this video, we will highlight the back-tested data of this measure going back to 1978.