If company earnings were the most important factor associated with company stock returns, shouldn’t the S&P 500 average annual index performance have reflected the average annual earnings growth of the companies that it comprises? According to Ben Carlson of Ritholtz Wealth Management, over the past 80 years corporate earnings have increased by about 6% annually…
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The cryptocurrency exchange Coinbase went public earlier this month. But rather than following the standard initial public offering (IPO) process, the company chose to do a direct public offering (DPO), also known as a direct listing. What’s the benefit to the company, and, more importantly, what’s the benefit (if any) to investors? In a standard…
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A thoughtless investor is someone who invests in something without performing any kind of due diligence first. I prefer the adjective “thoughtless” rather than “dumb” because the latter implies a lack of intelligence. Thoughtless investors can be highly intelligent but simply may not have the time or skills to do the work necessary to determine…
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Stock prices continue to set records. Bond returns are the lowest they’ve been in decades. Real estate has been upended by the pandemic. Where can an investor find decent returns anymore?  You could branch out into established alternatives such as commodities, gold, or collectibles if you believe they’ll provide better returns than stocks & bonds.…
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