There is a raging debate regarding the dominating role that AI is playing in the stock market. One side urges extreme caution believing we are in a classic bubble. This position is based on incredible returns, high valuations, soaring investor sentiment, and signs...
Why has the stock market been so strong in recent years? One answer is that Corporate America has never been so profitable. The following graph depicts corporate profit margins since 1947, and you will note that the current reading of 13.2% is 80%...
Unless you have been off the grid, you know that AI related, and more broadly, tech heavy companies have been dominating the stock market. They are also the subject of heavy media coverage and cocktail chatter, and friends in the brokerage industry relate...
“In the short term, the market is a voting machine, but in the long run, it is a weighing machine.” Benjamin Graham To make buy and sell decisions, investors continually weigh the price of a stock (or the overall market) versus the prospects...
A number of my recent posts have focused on the high level of risk taking in the capital markets. To name a few, I cited narrow high yield bond spreads, flows into crypto, trading of zero-day options, flows into leveraged ETFs, and so...
Last week, I posted a blog identifying a number of signs that investors are very much in a “risk-on” if not speculative mood. Do you remember the meme stock mania in 2020 and 2021 when the price of Game Stop stock went from...
