Why Earnings Quality Matters
https://youtu.be/fK8sVzVFs84 Several news outlets have talked about the deterioration in the quality of corporate earnings. Most companies report on both a GAAP and Non-GAAP basis. We are seeing many companies (especially technology companies) pay more of their workers in the form of stock compensation, which can enhance reported (Non-GAAP) earnings. The value of a company […]
3 Reasons Inflation Will Be Sticky
https://youtu.be/tEgRCUXgHCQ Inflation has fallen but will remain sticky. The energy transition, wages and global food policies will continue to cause inflation pressure. Thus, the Federal Reserve will have to keep rates higher for longer.
Be Careful of Edited Charts
https://youtu.be/ToK8uguojWA People use charts to tell a story. However, these charts and numbers can be manipulated to tell an intended narrative. In this update, we use three current examples of charts that don’t tell the “complete” story.
2023 – Top Stocks Driving the Return
https://youtu.be/kpasqYogTuE Even though the S&P 500 Index is up over 8% this year, it is being driven by only 7 companies. The equally weighted S&P 500 index is only up 1.26%. The Russell 2000 Index, which is made up of smaller companies is only up 0.64%. In addition, International stocks are outperforming the average US […]
Value – Intersection of Scarcity & Demand
https://youtu.be/TSrs74d5cXY The value of anything is dependent on scarcity (supply) and demand. In this update, we show how scarcity (lack of supply) in oil and copper is causing elevated commodity prices. The opposite is happening in shipping rates. Here, demand is falling at a time when capacity is rising. Over the long term, it’s better […]
THORdex & Portfolio Allocation Update
https://youtu.be/TN91WURfzM8 Watch our video to learn about THOR’s current thoughts on the equity market, fixed income market, and total portfolio allocation. We have a disciplined approach to investing and these charts will summarize that process and our allocation today.
MLPs – Story is Still Strong
https://youtu.be/ptMbPdauM9I Even though midstream Master Limited Partnerships have significantly outperformed the rest of the stock market since the beginning of COVID, they are still selling a compelling investment. Watch this market update to find out why.
SVB & Future Inflation
https://youtu.be/7IA3TuPxV9M Silicon Valley Bank’s (SVB) failure was primarily caused by investing in longer-term securities at a time of rising interest rates. Because of the failure, the Federal Reserve’s balance sheet rose by $299 billion last week. If this trend continues at the Federal Reserve, this is bad news for inflation.
The State of the Consumer
https://youtu.be/KsgbS7J_feo The economy benefited from consumers drawing down their savings which were accumulated during the COVID shutdown. Today the consumer is not stressed and has room to increase spending. However, if the current trends continue, consumers might hit a wall over the next several months. Watch this video to learn more.
Higher for Longer: Inflation & Interest Rates
https://youtu.be/WjaF6t5XxlA Inflation and interest rates will be higher for longer. Copper, oil, and wages will cause inflation pressure over the next few years, which will make it difficult for the Federal Reserve to cut interest rates. Watch this market update to learn more.