August 4, 2020

Why the Market is So Confused Right Now

According to the National Bureau of Economic Research, the U.S. economy peaked in February and officially entered a recession in March. This is a newsflash to exactly zero people. When the pandemic hit and the economy was put in the freezer, it was immediately obvious the longest economic expansion in this country’s history came to a screeching halt. It was not only the sharpest contraction in history, it was likely...

The post Why the Market is So Confused Right Now appeared first on A Wealth of Common Sense.

Frank Partnoy on the hidden systemic risk of leveraged loans

Frank Partnoy is a UC Berkely law professor and an expert on securities law. He wrote one of my favorite stock market books ever, The Match King, about one of the biggest corporate frauds of all time, which I wrote about here. Partnoy has a new article in The Atlantic this week looking at a hidden systemic risk to the banking system that no one else seems to be particularly concerned about – the market for CLOs. CLO...

The post Frank Partnoy on the hidden systemic risk of leveraged loans appeared first on The Reformed Broker.

Is This The Most Volatile Year Ever?

Not yet but it’s getting close. This year has 3 of the worst 25 losses and 2 of the 25 biggest gains for the S&P 500 since 1928: And the number of large daily moves is massive: Yesterday’s 5.9% loss was the 10th move of plus or minus 5% or more this year already. One-third of all daily moves in the stock market have been 2% or more this year. There have been 26 daily moves of 3% or more. In the previous ...

The post Is This The Most Volatile Year Ever? appeared first on A Wealth of Common Sense.

Oddball News Roundup

Unheard of

I’m not sure but I think Hertz may be the first listed company in history to announce a secondary stock offering after filing for Chapter 11 bankruptcy. This headline is truly one for the ages: When I saw it, I rubbed my eyes – I almost couldn’t believe this was real. But it is. This might be the definitive story of this market moment. What’s going on, in a nutshell: Hertz has been crushed because...

The post Unheard of appeared first on The Reformed Broker.

Listen to Jeremy Grantham explain the slow death of value investing better than anyone

Patrick O’Shaughnessy had GMO’s Jeremy Grantham on the other day and the first topic they got into was why value investing has stopped working, at least in the traditional sense. Grantham’s amazing in this interview. It’s loaded with lots of other stuff he’s thinking about, including the FANG stock phenomenon, what’s going on with commodity prices, central bank involvement in the bond ...

The post Listen to Jeremy Grantham explain the slow death of value investing better than anyone appeared first on The Reformed Broker.

Talk Your Book: Investing in Private Real Estate with Fundrise

Today’s Talk Your Book is presented by Fundrise: We spoke with Ben Miller, co-founder and CEO of Fundrise, about their real estate investing platform. We discuss: Investing in the private real estate market The difference between public and private markets during this crisis How has the crisis impacted real estate prices? Why interest rates don’t matter in a liquidity crisis The various segments of the priva...

The post Talk Your Book: Investing in Private Real Estate with Fundrise appeared first on A Wealth of Common Sense.

Southern Company (SO) Dividend Stock Analysis

Linked here is a detailed quantitative analysis of Southern Company (SO). Below are some highlights from the above linked analysis: Company Description: Southern Company is an Atlanta-based energy holding company and is one of the largest producers of electricity in the U.S. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four

To continue reading, please click on the article title above...