Equities Struggle as Yields Climb in 3Q23 The major U.S. stock market indexes were down across the board in 3Q23, thanks to a combination of revived recession warnings, rising yields, and a looming government shutdown. The 10-Year Treasury yield rose to 4.6% in September, climbing by more than 20.0% in 3Q23 to its highest rate
In May, I wrote a follow-up memo to Sea Change (December 2022) that was shared exclusively with Oaktree clients. In Further Thoughts on Sea Change, I argued that the trends I had highlighted in the original memo collectively represented a sweeping alteration of the investment environment that called for significant capital reallocation. This memo was
As measured by the Standard & Poor’s 500 Index, U.S. stocks have risen more than 20% since they hit a trough in mid-October 20221—a dismal year that brought the S&P 500’s worst calendar-year decline since 2008 but just its second loss in 14 years. They’ve roughly doubled in value since the pandemic-induced low of March
There’s a $13 billion fund that you likely have never heard of that has tripled the returns of the average hedge fund over the last 20 years. The most surprising thing is that their investment strategy involves buying and selling the same few hundred stocks. Let’s dive in! Greg Poole founded Echo Street Capital in
Thanks to everyone who suggested possible 10-100 baggers yesterday. I charted 17 of these possible multibaggers below. To compare their growth and valuation. I also charted some of the financials of 5 of the companies below.👇🧵 $FND Floor & Decor Holdings is an absolute beast of a company. At a P/E of 36x, it is
One of the most compelling momentum divergences I’ve seen in a while, as yields hover around 10yr+ highs…
There is only one other period in the historic record where the largest companies beat the smallest companies by so much over a 20-year timeframe. That was the 20 years to 1999. The 20 years after that witnessed the total opposite: Large Caps got crushed by Small Caps.