Category: Asset Allocation

Subscribe! Join Downtown Josh Brown and Michael Batnick for another round of What Are Your Thoughts? On this week’s episode, Josh and Michael discuss the biggest topics in investing and finance, including: ►Magic # for Rates – Is 1.5% the level where 10-year Treasury rates become competitive with stocks? How about 1.75%? How about 2%? ►Weak Balance Sheets – Stocks with weak balance sheets are now ou...

The post Of Course This Ends Badly appeared first on The Reformed Broker.

Final Trades: Morgan Stanley, Tripadvisor, Cleveland-Cliffs & more from CNBC. ...

The post Clips From Today’s Halftime Report appeared first on The Reformed Broker.

Ben Carlson · A Bleak Future For Long – Term Bonds Warren Buffett was none too kind to bonds in his annual shareholder letter this past weekend: And bonds are not the place to be these days. Can you believe that the income recently available from a 10-year U.S. Treasury bond – the yield was 0.93% at yearend – had fallen 94% from the 15.8% yield available in September 1981? In certain large and important countr...

Our most aggressive asset allocation strategy, named for NASA’s longest duration mission, is called Voyager. The term aggressive is a loaded word, it carries with it a connotation of truculence or irresponsibility – as though being aggressive is somehow an incorrect or reckless posture regardless of the circumstances. This is one of the reasons why we’re so careful about the words we use when sitting wit...

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We posted about the failure of Enloe State Bank in Texas a couple years ago. Here is the update:

Maybe you don't have a google alert for "Enloe State Bank" set, but never fear, I do and I would like to present you with what is possibly the ending of this small bank's sad story: https://t.co/5TgprvbtaZ

— Kiah Lau Haslett (@khaslett) February 24, 2021

My kids are now grown, and Disney is no longer cool. What a shame. I miss the movies like Toy Story and the quips aimed at the adults. One of my favorites was Buzz Lightyear’s line “To Infinity and Beyond!” My kids were toddlers when we first watched Toy Story and they had no clue what that line meant and the impossibility of achieving it. Have you ever pondered the concept of forever or

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I am struggling to find good investment opportunities. As such, my cash levels have been rising, as I have continued to sell companies that have risen to levels that are near my estimates of their...

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When the pandemic began and the gyms shutdown I scrambled to outfit my home gym like so many others. It’s pretty tough to go running outside in the Michigan winters and I have 3 young kids at home so I liked the idea of a Peloton for cardio purposes. I never would have considered buying one before the pandemic, but Covid forced my hand.1 Somehow we lucked out and got ours shipped in 2 weeks or so. Others haven’...

One of the most interesting things that happens after a big, nasty, protracted bear market is that no one wants to be accused of being bullish or upbeat about anything. In the aftermath of a crash, the bulls always look and sound dopey or complacent. Wall Street strategists are only human. And as markets trade higher, they gradually get more and more comfortable sounding positive on stocks. The trauma of having been bulli...

The post Only took 12 years, but Wall Street has finally gotten bullish enough appeared first on The Reformed Broker.

 You saw our post last week about the Bank of Utica 2020 Annual Report. On Twitter, @MidwestHedgie

I know that none of us like the CEO, and his annual letters are like "Fuck you, everyone! Also, we plan to barely make any money!" from beginning to end, but in spite of that, we've added to our bagholder status in $BKUTK. Why?

— Midwestern Hedgie (@MidwestHedgie) posted a good tweetstorm that we thought was worth sharing:

$BKUTK trades at 0.40x tangible equity. Unlike every other bank in America at this price, there is not a credit quality issue (the company barely makes any loans). They have a great municipal/commercial deposit franchise, which they invest primarily in short-to-intermediate debt.

— Midwestern Hedgie (@MidwestHedgie) February 26, 2021

So, long $BKUTK you are getting:
a pain in the ass CEO
a 3.95% (and growing) dividend while you wait for a re-rating
high margin of safety in price (0.4x tang book)
core earnings set to move significantly higher
potential windfall move higher if they ever buyback shares

— Midwestern Hedgie (@MidwestHedgie) February 26, 2021