Real Interest Rates have an immense impact on the stock market as well as the bond market. Nonetheless, they are widely misunderstood. Hello and welcome back to Reflections on Investing with the Cornell Capital Group. And today we're going to…
Would you believe, that long-term US Treasury securities, historically considered one of the safest investments, have now dropped more than the stock market did during the great recession of 2008? What are the implications for fixed income investments going forward?…
Discount rate variation (equivalently expected returns, risk premiums) is now at the center of asset pricing questions, from bubbles to the nature of the crash.----- John Cochrane, Presidential address to the American Finance Association.As John Cochrane notes, it is hard…
In August of 2020 Apple issued a 40 year, 2.55% bond, two years later that bond is down nearly 40%. Apple's stock on the other hand is up over 50% in that same period. Why is that and what does…
Is a large daily drop in the market a buying opportunity? We used 60 years of daily data to see what happens after the market drops. Hello and welcome back to Reflections on Investing with the Cornell Capital Group. It's…
One of the most difficult problems for fundamental value investors is reconcliling value and momemtum. Welcome back to Reflections on Investing with the Cornell Capital Group. As we sit here now, the first half of the year is over, and…
Stock Market Review for the First Half Year The market performance in the first half of 2023 was a surprise, to say the least. Whereas the year began with concerns about an impending recession, the market shrugged off those fears…
Science advances one funeral at time – Max Planck The same can be said of the equity risk premium. Using fundamental valuation analysis to assess the level of the stock market, as measured for instance by the S&P 500 index, requires…
Updated March, 6th 2024In this article, we assume that AI, which we recognize has many different forms, will be a major economic success in that it will lead to greater productivity and rising GDP in the United States. The question…
Presently just five US tech companies account for nearly 25% of the S&P 500 market cap. We discuss resurgence of big US tech and what it means for investors. Hello and welcome to Reflections on Investing with the Cornell Capital…