Celebrating the S&P record high? Recession averted? Gerard Minack notes “The SPX is typically within 2% of its cycle high 2 months before the start of a recession.” Going into recession, the equity market collapse comes AFTER the Fed starts cutting rates as profits collapse.
Trading in options contracts on the verge of expiration surged last week, just as the S&P 500 logged its first record close in two years, according to data shared by a top U.S. equity market strategist at Citigroup. Options contracts with 24 hours or less left until expiration saw a spike in trading volume last
Warren Buffett and Charlie Munger’s annual letters to Berkshire Hathaway shareholders are a treasure trove of wisdom, offering insights into their investment strategies, philosophy, and views on the market. Over the years, these letters have provided key takeaways that are valuable for any investor. Here’s an analysis of the most significant lessons drawn from these
The backstory: I began writing these memos in 1990 and continued to do so for ten years despite never receiving a single response. Then, on the first business day of 2000, I published bubble.com, a memo with warnings about excesses in the tech sector that turned out to be timely. The inspiration for the memo
John Mackay was born in Dublin, Ireland in 1831. At the age of 9, the Mackay family immigrated to the US, living in the notorious Five Points in lower Manhattan, which was known as the worst slum in the United States. John was lucky in that his parents scraped together enough money to send him
This is the fourteenth annual letter to owners of Fundsmith Equity Fund (‘Fund’)… The T Class Accumulation shares, the most commonly held share class and one in which I am invested… rose by 12.4% in 2023. This compares with a rise of 16.8% for the MSCI World Index in sterling with dividends reinvested. The Fund
Our partnership delivered a gain of +82.0% net of all fees, expenses, and allocations for the full year 2023. This year’s returns were unusually strong. While the laws of probability would suggest that we are unlikely to repeat annual returns of this magnitude ever again, I am nonetheless happy to share this update and to
It has been nearly a half century since Jack Bogle launched the first index fund available to individual investors, a revolution that took many years to gain traction. Today, trillions of dollars are managed using passive strategies that attempt to merely achieve the average return of a targeted index. An investment policy that was once
Nick Sleep beat the market by a mile for 13 years His fund returned 921% vs. 117% for the MSCI world index, which is almost a 9X better result than the index. Sleep compounded shareholders’ capital by 20.8% annually (18.4% net of fees) while running Nomad Capital. This is a spectacular result. Let’s dive into