At current valuations, it is virtually certain that investors buying the S&P 500 – especially the largest and most overvalued stocks – will be severely disappointed since future returns for at least the next decade will be paltry.
Equity prices are at multi-decade highs. As such, Porter predicts, it will take at least a decade for many of today’s S&P 500 members to “grow” into their current valuations.
Fifty-five years ago, Warren Buffett announced his retirement. In 1969, the legendary investor felt he could no longer generate the 30% returns he had been generating. Then things changed…
In today’s Daily Journal, Porter writes that Americans now have more capital allocated to the stock market than ever before. And thus, stocks are now trading at record-high valuations. This has led to one outcome when this has happened in the past… And it’s not a good one.
What the arrest of my friend, an extravagant, big-spending real estate broker, has to do with the next big financial crisis.
The finance-industrial complex is not happy about memecoins. Or more to the point, that 18 year-old kids are minting small, and not-so-small, fortunes by speculating on worthless assets. In today’s Daily Journal, we discuss what this means under a Trump administration.
Warren Buffett is famous for saying that it is wise for investors to be fearful when others are greedy and to be greedy only when others are fearful. Porter shares an example of one trader whose actions make it easy to recognize where we are now in regards to those extremes.
While the overall market continues to ride higher, there are signs beneath the surface that suggest things could begin to turn. Taking lessons from a legendary investor, we look at how to avoid getting caught up in the exuberance.
An investment fad is a short-term financial trend that quickly gains popularity and interest among investors – but typically lacks long-term viability or strong underlying fundamentals. Let’s look at several prominent fads of the last decade and see what they reveal about today’s investment fads.
Betting on perfection is a fool’s errand in any environment. It’s particularly risky today as the economy teeters on the edge of recession and a looming debt crisis. Fortunately, the bubble in AI and tech stocks is setting up a tremendous opportunity elsewhere.