Compared to tech darling Google, this company is the very definition of boring: slow growth, low margins, and capital intensive. Many would argue that it’s also a pretty lousy business. But digging into the financial statements of both this company and Google makes you wonder… which company is actually better?
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.
Last year’s sell-off in technology stocks crushed the shares of internet-infrastructure giant Amazon. But a recent momentum shift in the share price signals big gains may lie ahead.
Our leading indicator of inflation growth tells us the Consumer Price Index is headed even lower when the May data is released. That should support the outlook for stocks…
The real federal funds rate (interest rates minus CPI) recently turned positive. It should expand more by year’s end. That has historically preceded big rallies in technology stocks.