Money for Nothing Checks for Free
August 9, 2020
While our once vibrant economy has been quarantined for state-mandated experiments, earnings outlook is beginning to stabilize for a path to recovery. It isn’t pretty.
Climbing A Wall Of Margins
February 6, 2019
Earnings growth set a new millennium record in 2018. It’s now a major hurdle to growth in 2019. Growth estimates are a third of last year’s and declining. The mortar in the market’s wall of worry now is margins.
Just One Word – Margins
January 9, 2019
Margins drove outstanding earnings growth in 2018, and can choke it off in 2019. It may seem as if this correction is a bit overdone. But there is a major issue. Margins are at record highs and forecast to recede.
Earnings Insight August 2018
August 27, 2018
Earnings continue their record-breaking trend. S&P 500 price gains have been driven by earnings growth as overall valuation has subsided. Record margin levels contributed half the earnings growth, but may be the main drag in 2019.
A Ferengi’s Equity Allocation
July 4, 2018
Star Trek’s Ferengi are a species whose culture is entirely based on commerce. Business is pleasure and money is everything. So how would a Ferengi invest in Earth’s stock market? What would their Blue Planet Portfolio look like?
June 29, 2018
We’ve heard that we should rebalance our portfolios. It’s good for us. Kind of like fiber. But why? How? And how often? Here are three popular methods that compliment most investors’ needs.
Earnings Insight May 2018
May 11, 2018
Stock market’s character has fundamentally shifted. Gains last year came almost entirely from earnings, and at the lowest volatility in three decades. Earnings growth is at a seven-year high. But future growth depends on margins already at nose-bleed levels.
Manager’s Letter 2018 Q1
April 4, 2018
While no investor who’s long the market enjoys a correction, negotiated properly, it can be turned to an advantage. At Coherent, we focus on proactively mitigating downside risks by actively managing our stock market exposure.
Stocks, Bonds & Interest Rates
March 30, 2018
Investors are often apprehensive about how changing interest rates will affect their investments. Record low bond yields look poised to break out of a 6-year range. Will rising rates squash stocks? Burst bonds?
Earnings Insight February 2018
February 13, 2018
Earnings in 2017 have been spectacular. Estimates for 2018 have risen to a millennium record, and so have market valuations. But high margins levels caution for more reasonable expectations. The recent correction may just be an omen.