Barron’s this weekend had an article with the headline “How to Prepare for a ‘Lost Decade’ in stocks.” Some of the key arguments are that the market’s cyclically adjusted price-to-earnings ratio has reached 38—putting it in the 97th percentile going back to 1930. Market concentration is in the 99th percentile. Goldman Sachs predicts annualized equity...Read More

In the last newsletter article, we showed the pricey valuation of Apple. Instead of just picking on Tech, I thought it might be helpful to look at a few old-fashioned retailers, as the bubble is pretty widespread. Walmart trades at 38x earnings. Costco trades at 56x earnings. To put some context into this, if Costco...Read More

Stock market bubbles can be intoxicating as the psychological battle between the fear of missing out, versus the logic that stocks are clearly overvalued transpires. Apple (AAPL) is arguably the best-known stock in the United States, so it makes a great example to discuss just how wild current valuations are. Now Apple’s market capitalization is...Read More

“In the short-term, the market is a voting machine. In the long-term, it is a weighing machine.” Benjamin Graham Warren Buffett’s mentor, Benjamin Graham’s quote is particularly applicable in describing today’s market environment. Euphoric optimism has propelled most asset classes to extreme valuations. As a case in point, the inflation adjusted CAPE Price to Earnings...Read More

At TT Capital Management, we employ dynamic investing strategies and financial management to maximize risk-adjusted returns for our clients. To highlight some of these innovative approaches, clients have told me that they find trade examples helpful. Here is a trade we executed recently. EPR is a real estate investment trust that focuses on experiential properties...Read More

The WSJ had an intriguing article about Warren Buffett’s Berkshire Hathaway, and its accumulation of $325B in cash and equivalents (mostly Treasury bills), as a result of selling large portions of several of its biggest stock positions such as Apple and Bank of America. Buffett also failed to repurchase any of Berkshire’s own stock in the...Read More

From all of us at TT Capital Management, we would like to thank the veterans that served our great country so honorably. We appreciate you; we salute you, and we honor you on this day! Sometimes veterans have specific financial advisory needs, so if you know anyone needing help, please don’t hesitate to let them...Read More

Barron’s magazine has a good article this weekend regarding long-term care insurance. As we’ve discussed before, an estimated 70% of people turning 65 will need long-term care insurance. This could be basic help with daily tasks, or it could be full-service nursing care. Most of that 70% will rely on unpaid family members, or Medicaid,...Read More

First of all, for anyone that was impacted by Hurricane Helen, or that is in the path of Milton, we are praying for you. If there is anything we can do to help, please let us know. A radio listener recently asked, “if stocks are in a bubble” why would I want to be in...Read More

It’s only October 3rd, but the month is already off to an ugly start. The hurricane and flooding which ravaged the Southeast has caused immense suffering and damage. Our prayers and thoughts go to anyone that was impacted by those horrendous conditions. In truly terrible timing, a major Port strike impacting much of the East...Read More