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.
This company became Warren Buffett’s playbook for Berkshire Hathaway. Acquire the asset at a large discount to net asset value, borrow against those assets, use the losses from the legacy business to offset gains from new acquisitions, liquidate the legacy business… and profit massively as the new company grows.
A president threatening to set up a second revenue agency for the federal government isn’t good news. It’s horrifying, Porter reports, on the news that the incoming Trump administration has proposed an External Revenue Service.
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.
In his election-night speech following his resounding victory on November 5, President-elect Donald Trump expressed what would happen after he took office. So what has Trump promised to do, economically? In today’s Daily Journal, Erez Kalir focuses on three key pillars of his policy agenda: tariffs, immigration, and taxes.
Soon, we’ll see the return of the “misery index,” Porter predicts in today’s Daily Journal – with both inflation and unemployment running at around 6%.
For investors who understand the relationship and the economics of power and intelligence, Porter explains, the next decade will produce an unprecedented amount of wealth.
The heads are finally starting to roll in commercial real estate. And another $200 billion of office mortgages remain outstanding and will need to be refinanced before the end of 2026. This could turn out much worse than the subprime-lending fiasco from 2007.