The ultimate source of value for common stocks is the earnings of corporations. In the last four and a half years the S&P 500 has risen 124%. How is that increase related to earnings and what does it imply for…
A common refrain is that to get more return you have to bear more risk. But what exactly is risk? We revisit this important issue. As part of the work leading to his Noble Prize, William Sharpe noted that in…
Professor and Nobel Prize winner Eugene Fama put forth the efficient market hypothesis and based on that concept Warren Buffet suggested that holding a passive investment in the S&P 500 was the best advice for most investors. If the market…
When attempting to explain movements in stock prices the media often overlook the key facts that for every buyer there is a seller and every outstanding share must be held continuously. As we record this, the S&P 500 has surpassed…
The decade ending in 2023 was a great one for common stocks. Is the next decade likely to be as good? We provide an analysis using Damodaran's equity risk premium (ERP) and a framework developed by Jordan Brooks of AQR…
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?…
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…