Last week, Donald Trump announced he would nominate Kevin Warsh to be the next Federal Reserve Chair, a move that surprised plenty (including us, since we thought Rick Rieder would be selected). The market did not take the announcement well. Many attributed the selloff to Warsh’s criticism of easy-money policies and the large expansion of […]
While leadership changes at the Fed can spark uncertainty, the S&P 500 historically rallies whenever a new U.S. Federal Reserve Chair is appointed. In fact, going back to 1970, the S&P 500 has gained 12.7% in the twelve months that follow. This data is particularly timely, as Jerome Powell’s term ends on May 15, 2026. […]
In the world of behavioral finance, there is a well-documented phenomenon known as loss aversion. Nobel Prize-winning psychologists Daniel Kahneman and Amos Tversky found that the pain of a loss is psychologically twice as powerful as the joy of an equivalent gain. Statistically, most investors require at least a 2-to-1 gain to offset the emotional […]
This time last year, California was engulfed in devastating wildfires. Thousands of acres of property were destroyed, and it didn’t take long for fingers to point at Edison International (“EIX”). Consequently, the stock plummeted over 30% over a matter of days, wiping out almost $10 billion in the stock’s market value. The investigation into whether […]
The financial crisis of 2008 was a defining moment for me as an investor. Watching the panic unfold on Wall Street, with banks teetering and markets swinging wildly, solidified my philosophy to buy when others are selling. One of my purchases during that period was Apple. In December 2008, I bought shares around $3.36 (adjusted […]
Our investment in Canadian Utilities (“CU”), which delivers gas and electricity, in November 2023 was based on a straightforward premise: its attractive 5.7% dividend yield positioned it as a prime beneficiary of anticipated interest rate cuts. We believed falling rates would naturally enhance the appeal of high-yielding dividend stocks like CU for income investors seeking […]
Google’s parent, Alphabet, is delivering strong results—yet shares are down almost 19% year-to-date. (Disclosure: Jeff Pollock and Sunni Schneider directly and indirectly hold a financial interest in Alphabet as shareholders.) Last quarter, Alphabet reported: Despite these strong fundamentals, the stock trades at just 16x earnings, a meaningful discount both to the broader market and to […]
