Introduction . After rallying earlier this year, small caps have gotten crushed over the last few weeks (figure 1). This is normal during the slowing phase of the economic cycle since small caps have more domestic and cyclical exposure and perhaps less certain financial stability (see Tactical Allocation Over the… Continue reading
Introduction . Headlines are blaming the recent market correction on rising rates. While this may have been a catalyst for the correction, or a tipping point, it was probably not the underlying cause. . Over my career, I have observed that the best stocks have solid earnings growth, improving growth,… Continue reading
Introduction . I am super interested in the direction of the housing market. Are you? You should be. . Housing normally contributes to a significant portion of one’s net worth. The Federal Reserve reported that housing assets were over $25 trillion in 1Q 2018, or about a quarter of overall… Continue reading
Introduction . Currency movements drive, and are driven by, economic conditions, and have become more important due to globalization. Given the current and looming trade wars, it is not surprising that Google web search for the dollar is at an all-time high (figure 1), and the dollar has risen strongly… Continue reading
Will Earnings Growth Come in for a Landing? . After three years of positive and accelerating growth, earnings growth is expected to slow starting after the current quarter (figures 1-2). 2015-16 growth was held back by the “recession” in the commodity and industrial markets. 2017 charged back as oil prices… Continue reading
Introduction . Tactically varying allocations to different assets can significantly improve returns; however, it is notoriously difficult to do well for most people. Asset rotations are tied to economic and market cycles; thus, the key to timing asset rotations is an understanding of where one is in the cycle… Continue reading
Summary Technology stocks are on fire, as is normal at this stage of the economy Corporations are not underinvesting, as some people may lead you to believe Long-term investment growth is tied to productivity, but in the short-term it may be a contrary indicator The dominant tech companies may be… Continue reading
Introduction . Understanding the position in the cycle is paramount. That point determines returns and risks. Future risks are highest when returns are strong during the latter stages of the cycle, but investors frequently ignore them to their detriment. And the cycle is getting old. Perhaps we have one to… Continue reading
Introduction . Too many people are riding the bitcoin roller coaster blind. Owning an asset and not fully understanding its worth, or even attempting to determine its worth, and risks is like riding a roller coaster blind. You only know if you are going up or down as you feel… Continue reading
Author: Kody Babler (student) . Edited by: Kathleen Gallagher, Executive Director, Milwaukee Institute, Executive in Residence in Investment Communications, University of Wisconsin-Milwaukee, former author of investment trend pieces and Pulitzer Prize winning reporter for the Milwaukee Journal Sentinel . Click here for the complete report on Las Vegas Sands Corp. with additional… Continue reading
