“SEC Seeks to Curb Lofty SPAC Projections Statement by regulator’s acting director addresses the frenzy over blank-check company deals” This is from the Wall Street Journal yesterday (April 8), and it could be a big deal. One of the major advantages of a company going public via a SPAC (Special Purpose Acquisition Company) is that […]
“Norway’s Stock Investing Behemoth Signals Shift to Active Management”
This is a headline from the Wall Street Journal yesterday (April 7). For years we have seen a shift the other way, from active to passive. This shift has caused major changes to the way markets work, including: 1. Active managers will typically hold more cash than index managers. Therefore, a shift to passive also […]
“The SPAC Boom Is Over. That’s Creating Bargains for Investors.”
This was a headline in Barron’s yesterday. The article points out what a lot of others, including us, have been noticing, that there are a lot of Special Purpose Acquisition Companies (“SPACs”) now trading for below the cash they have in trust. SPACs give investors the right to redeem their shares for a proportionate share […]
“White-Hot Stock Rally Masks Mammoth Value Swings”
This was a headline in the Wall Street Journal on April 5, 2021. Of all the things going on in markets this year, one of the most important is the battle between growth stocks and value stocks. Growth stocks have outperformed for years, but as the vaccine rolls out and the economy starts to reopen, […]
Rethinking Bonds
The markets are starting to price in higher interest rates than the Fed is predicting. That’s significant as bond prices move inversely with interest rates. Investors buy bonds for two primary reasons, either for income or to reduce portfolio risk. For income investors, higher rates aren’t such a bad thing; you could possibly take less […]
Quarter End
This could have been the most interesting quarter I have ever seen in the market. I usually have CNBC on mute in the background, but every once in a while, I find myself compelled to turn on the sound as they are actually talking about something interesting. We saw the rise of the retail trader […]
Agility, Not Timing
Today’s Yahoo Finance Morning Brief featured an interesting point made on Tuesday by Compound Capital Advisors’ Charlie Bilello: “The 25 stocks in the S&P 500 with the lowest returns last year are all positive to start the year, with a median return of +32%,” Bilello observed. “On the flip side, the best performing stocks from […]
Signs of a Bottom?
Stifel put out this note yesterday: “While sentiment in SPACs is still well off the Feb euphoria, there was a notable shift last week as we witnessed a return of the PIPE. More than $2.5B was raised in PIPEs to support the 7 deals announced last week. While this total still pales compared to the […]