Retrospective As 2021 came to an end, the stock market party was going strong. The S&P 500 index closed at 4766.18 up 1,010 points or 26.9% for year to within a hair’s breadth of its all-time high. The Dow Jones…
Efficient markets If markets are efficient in that prices always reflect fair value and expected returns on stock are constant, why would anyone need an investment manager? There are two answers. The first, put forth by Sandy Grossman and…
Looking BackToo often financial market analysis is focused on the issue de jour – jumping from hot topic to hot topic with little reference to what was said in the past. Breaking from this tradition, this quarterly memo takes stock…
A Time for Caution: Cracks in the Dam As 2021 draws to a close, our primary objective at the Cornell Capital Group remains protecting our client’s capital. In a market where valuations remain frothy this means a strategy of carefully…
A Time for Caution: Cracks in the Dam As 2021 draws to a close, our primary objective at the Cornell Capital Group remains protecting our client’s capital. In a market where valuations remain frothy this means a strategy of carefully…
The Challenge Continues As the third quarter of 2021 draws to a close, investors face the same challenges: record high stock prices relative to any measure of earnings or revenue and record low interest rates. In this environment it is…
The Rise of the Unprofitables and Market Hyperopia? Once upon a time there was great concern about “market myopia” - the tendency of investors to be strongly focused on the short term at the expense of long-term benefits. Along with…
Is it still the year of not good enough?We concluded our year-end 2020 investor memo by saying that 2021 will be “the year of not good enough.” This does not mean we are expecting an economic downturn. What it does…
Expectations and Investment Returns To provide perspective on investing in 2021, at Cornell Capital Group we start with a fundamental concept from finance theory. The theory states that if a company performs according to the cash flow expectations reflected in…
Welcome to the first of an ongoing series of Cornell Capital Group quarterly investor memos. The purpose of these memos is both to reflect on the current financial market environment and to explain our future outlook. With the impact of…