As April ends and May begins, the drumbeat of "Sell in May and Go Away" grows louder and louder. It's important to remember two things about this concept: 1) it does not work every year and 2) a better approach has typically been to "rotate to defensives" like healthcare and staples in May versus going away entirely.
For Part 2 of the portfolio creation topic, I wanted to shift to offense. There’s thoughtful, steady growth while paying attention to costs and maintaining high operational efficiency and there’s growth at all-cost. When rates were at zero and access to capital was plentiful, the “growth-at-all-cost” companies performed exceptionally well.
For Part 2 of the portfolio creation topic, I wanted to shift to offense. There’s thoughtful, steady growth while paying attention to costs and maintaining high operational efficiency and there’s growth at all-cost. When rates were at zero and access to capital was plentiful, the “growth-at-all-cost” companies performed exceptionally well.
The stock market has been on a wild ride, with significant volatility and uncertainty. The bulls are grappling with a range of challenges, including an economic slowdown, rising inflation, and geopolitical risks.
The stock market has been on a wild ride, with significant volatility and uncertainty. The bulls are grappling with a range of challenges, including an economic slowdown, rising inflation, and geopolitical risks.
I wanted to do a two-part series, one focused on the benefits of holding defensive business models that tend to perform well in more difficult economic periods, and one focused on playing offense through secular growth brands.
In the "return generation business", institutional investors have a big edge over retail investors. The WHY is what's most important: institutional investors have access to the smartest asset managers in the world, have the time, experience, and resources to assess all potential investment ideas, have a long-term time horizon (wide lens investing), and act opportunistically when asset prices get weak.
In my opinion, true active strategies have a very important role in portfolios as complements to passive, cheap beta. Advisors need to understand what they own.
October was marked by continued volatility across fixed income and equity markets as investors faced various challenges, including persistent inflation concerns, rising yields, tightening monetary policy, and the backdrop of a U.S. Presidential election.
As an investor, it’s nice to know what we should expect from President Trump, because we have seen the movie before in 2017 – 2021. Apart from the early part of the Pandemic period, the economy and stock markets generally performed well.
Remember, our investment in stocks is a De facto vote of confidence on the economies in which we invest. Earnings, revenue, margins, free cash flow, and the growth of these important metrics is what drives stocks up or down over time.
The discretionary sector struggled as did all growth and quality-oriented areas of the market in 2022. That was a classic re-set and a raging opportunity to add exposure.
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