Keep the Fed Independent
Like many others, we have complained about many of the decisions the Federal Reserve has made in the past. However, we would rather have an independent Federal Reserve than one swayed by politics. Historically, the more independent the central bank, the lower the rate of inflation.
US Stocks Disconnect from Earnings
When buying a stock, you are investing in the future of the company. Historically a stock price is highly correlated to earnings growth. If earnings grow, the stock increases and vice versa. What we have seen in the past decade is that many US large company stock prices have increased, but earnings have not kept […]
Are We Headed Into a Recession?
The yield curve turned negative and is a possible sign of recession. Are there any other signs? Yes, trucking rates are now down year over year. Also consumer confidence is near a 50 year high, which has shown to be a contrary indicator. The probability of a recession has increased.
China Trade Deal: What It Means for Your Portfolio
According to THOR’s disciplined approach, we believe international stocks (especially emerging markets) are set to outperform US stocks over the next several years. The current trade dispute between the US and China may be a catalyst. If a deal is completed, emerging market stocks should appreciate much faster than US stocks. If there is […]
THOR’s Disciplined Approach
Jim Gore, CIO, discusses the first two steps of THOR’s investment process. He uses these steps to describe an investment opportunity in Master Limited Partnerships (MLP’s) today.
Market Sell-Off Update: Why Diversification Matters
Before the recent sell-off, the S&P 500 was more overvalued than the beginning of 2000 (when looking at price-to-sales ratio). This market sell-off is also different than that of 2000. Here we have seen all parts of the market sell-off initially. In 2000 this was not the case. There were places in the market that […]
Corporate Debt Looms Large
Corporations have had the wind at their backs with low interest rates. This lead to record levels of corporate debt issuance, which has surpassed 45% of GDP. There are now over $4trillion in corp. bonds due over the next 5 years. Companies will be forced to refinance at high rates or sell stock, which could […]
Fed is Falling Behind the Curve
Short term interest rates should be much higher – possibly 5%. The Federal Reserve is behind the curve and we believe this will lead to inflation.
Cash Yields More Than Stocks
Today short term bonds yield more than the stock market, Jim explains in the most recent video update…
Inflation Being Caused by Trucking, Shipping, and Energy Prices
We believe inflation pressures will be here for at least the next two years because of higher costs for shipping goods around the globe. Both the trucking and cargo shipping industries have initiated new regulations that are, by themselves, increasing costs. In trucking, it is the regulations regarding electronic logging devices (ELDs) and in […]