Saturday, November 28

Investing

with a focus on value investing, hedge funds, large asset managers, and value investing. We have provided beneficial information for the purpose of value investing for value investors

Three reasons to consider investing in family-owned companies
Investing

Three reasons to consider investing in family-owned companies

It’s Thanksgiving season in the US, and our thoughts turn to family — which makes this a great time to explore the topic of family-owned businesses and some of the misperceptions that seem to surround them.Some investors fear that family-owned businesses, especially those without an independent board of directors, may not prioritize their shareholders’ interests and, by extension, may produce less reliable or inferior investor outcomes. That perception, however, doesn’t bear up under scrutiny.Family-owned companies are more prevalent internationallyThis is particularly important for investors in international small- and mid-cap stocks (or “smid caps”) — which is our team’s focus. Family businesses are more common abroad, especially among smid-caps.For example, consider the CS Famil...
Dow 30,000: We made it! Now what?
Investing

Dow 30,000: We made it! Now what?

It seems like only yesterday that the Dow Jones Industrial Average (Dow) first pierced the psychologically-important 10,000 mark. I remember gathering around the office televisions on March 29, 1999, to watch the Big Board move into five-digit territory. The traders on Wall Street erupted in cheers and paid homage to the old ticker-tape days by throwing confetti into the air. Investors donned “Dow 10,000” hats while the analysts and pundits prophesized about a prolonged era of stock market gains and mounting prosperity.At the time, Dow 10,000 seemed destined to one day be as outdated as Y2K fears or “La Vida Loca” or tiny backpacks. Alas, time flew but the market didn’t — it fell back below the 10,000 level and didn’t top it again until 2009 (to much less excitement this time — we’d land...
10 reasons for investors to be thankful this year
Investing

10 reasons for investors to be thankful this year

It won’t be the Thanksgiving that many of us had envisioned. COVID cases are currently rising at catastrophic rates, and hospitalizations and fatality rates are following in tow. Family plans have been meaningfully altered — I, for one, won’t be attending the Macy’s Thanksgiving Day Parade for the first time in decades. And while dinner outdoors with my sister’s family in 40-degree weather will be novel, it will certainly not be ideal. We recognize, of course, that these are small prices to pay to promote the health and safety of our families. Instead of longing for Thanksgivings past, we’ll focus on the true spirit of the holiday, and remind ourselves of what we’re thankful for.I think this is a healthy exercise for investors as well. Below, I list 10 items that investors can be thankfu...
CAD Retail Sales Beat, Oil & Equities Dip
Investing

CAD Retail Sales Beat, Oil & Equities Dip

Canada’s retail sales jumped 1.1% in September while the ex-autos sales aggregate grew 1.0%. Both measures easily beat expectations for modest gains, and marked the fifth consecutive monthly increase since the record declines in April that came as the economy was shut down. Core sales, which exclude gasoline stations and motor vehicle and parts dealers, climbed 1.1% in September after the 0.4% gain in August, led by a 1.8% pop in general merchandise store sales that was the first gain in three months. Motor vehicle and parts dealers grew 1.5% for a third straight monthly gain to leave sales 1.7% above February levels. Moreover, new motor vehicle sales in September were 36.9% above the pre-pandemic level seen in February. Consumption retained solid post-shutdown momentum through September b...
Markets gain increased certainty on key issues
Investing

Markets gain increased certainty on key issues

The British philosopher Bertrand Russell once said, “What men want is not knowledge but certainty.” I have been thinking a lot about that quote in the last several weeks, and how especially in such uncertain times, certainty may be more helpful than knowledge in allowing us to move forward.Markets crave certainty as much as humans, and the good news is that we have gained much greater certainty on a number of topics than we had just a few weeks ago:COVID-19 vaccine. There has been meaningful progress toward developing a vaccine that could be distributed next year. Pfizer announced last week that it has developed a vaccine that has produced strong results in trials thus far, indicating it is 90% effective. And today (Nov. 16), Moderna announced that its coronavirus vaccine was 94.5...
How to spot stocks to buy with Growth Potential
Investing, Trading Tips

How to spot stocks to buy with Growth Potential

28 March 2020 , Ella VincentZoom Video Communications (NASDAQ: ZM) took off like a rocket since it went public in 2019.  The videoconferencing site Zoom has become essential for workers during the coronavirus (COVID-19) crisis.  With the rise of videoconferencing to keep up with friends, families, and co-workers, Zoom shares climbed 20% over the past few weeks.  Along with Zoom, there are four other strong growth stocks in this article that are still solid investments in the midst of a volatile stock market. During this bear market, these stocks can potentially be a savvy investor’s source for low-risk investments.Growth stocks are stocks that are growing much faster than other equities on Wall Street. Many of them have higher-than-average valuations. Investors can look closely at...
Tactical Asset Allocation Models — November 2020
Investing

Tactical Asset Allocation Models — November 2020

Macro updateThe return of the coronavirus across Europe and the Americas represents an important risk factor for the global economic recovery. We contemplated this risk back in the spring and outlined a baseline scenario of a meaningful second wave of COVID-19 infections across the northern hemisphere upon the return of colder temperatures. The probability of a double-dip recession in Q4 2020 is certainly increasing across multiple regions, but it does not need to translate into the same economic and financial shock experienced with the first wave. A combination of ample monetary and fiscal policy support, together with economic adjustments and measures implemented over the past seven months, is likely to reduce the uncertainty associated with this second wave compared to the first. Whi...
10 of the Best value stocks to invest in right now
Investing, Stock, Suggested, Trading Tips

10 of the Best value stocks to invest in right now

Value stocks can seem like a bargain to investors, but can become a valuable part of an investor’s portfolio. This article will explain what value stocks are, how they differ from growth stocks, and how TradingSim can help investors find the 10 best value stocks.What is a value stock?A value stock is a bit like a stock on sale. Value stocks tend to trade at lower prices than other stocks.  In addition to being cheap, value stocks tend to have less-than-average growth than other stocks. They also tend to have low valuations in relation to earnings and cash flow.Value investing can be a great choice for risk-averse investors who want to slowly wade into the investing waters.  Value stocks also tend to have dividend payments to investors every quarter. Also, with the Dow Jones in ...
Would the Turtle Trading System Work Now?
Investing, Trading Tips

Would the Turtle Trading System Work Now?

09 April 2020 , Ella VincentDuring an economic downturn, many traders claim to have effective strategies to beat the system and still maximize profits. The turtle trading system is one of those systems. This article will explain the turtle trading system and how it worked for traders in the past. In addition, this article will demonstrate whether turtle trading could work in this volatile, coronavirus-addled market.What is turtle trading?When he met fellow trader, William Eckhardt, Dennis asserted that traders could be grown as easily as turtles on a farm that he saw in Singapore. (So, that’s the origin story of turtle trading’s name.) Eckhardt disagreed and thought that traders like Dennis had a natural gift. As a result of the disagreement, they decided to bet and see if Denn...
SteelPath November MLP updates and news
Investing

SteelPath November MLP updates and news

Midstream equities outperformed the broader markets in October as third-quarter earnings season kicked off with better-than-expected results. Increasing midstream free cash flows are expected to bolster improve balance sheets in the years ahead as capital spending requirements have ebbed.MLP market overviewMidstream MLPs, as measured by the Alerian MLP Index (AMZ), ended October up 2.9% on a price basis and up 4.3% once distributions are considered. The AMZ outperformed the S&P 500 Index’s 2.7% total return loss for the month. The best performing midstream subsector for October was the Gathering and Processing group, while the Diversified subsector underperformed, on average.For the year through October, the AMZ is down 48.7% on a price basis, resulting in a 43.5% total return lo...