PortfolioWise Blog

Defund The Value Police — Unless Or Until They Get It Right

I wouldn’t be surprised at all if the market’s recent tech wreck caused the long dormant Value Police to run to the spotlight. Ignore them; they’re still wrong. Value can never work in isolation, but always works when joined with growth. Softbank shenanigans aside, I wouldn’t be at all if the market’s recent tech wreck

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Small-Capitalization Stocks

What It Will Take For Small-Capitalization Stocks And ETFs To Shine

Led by Fama-French  and the Quant community, Wall Street has long considered Small-Capitalization to be a significant factor in and of itself. Not so! Fundamental assessment of businesses shows that large and small companies are structurally different and that all else being equal, smaller firms are riskier. Aiming at small-cap per se a risk-on choice;

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Future-FANMAG Stocks Are Highly Valued, But Not Necessarily Overvalued

There are lots of stocks out there that have the potential to become FANMAG-like superstars of tomorrow, and ETFs that invest in them. One can, however, wonder if such stocks and ETFs expose investors to the sort of value crash we experienced in 2000-02. Analyzing the Chaikin multi-factor Power Gauge model, I suggest that such

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The One Constant is Change

Creative destruction is the hallmark of progress. We can think of it as economic innovation. There is actually an entire page on Wikipedia devoted to it. You can check it out here. According to the site, it is a concept in economics which since the 1950s has become most readily identified with the Austrian-born economist

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ETFs That Invest In Classier Versions Of Junk Bonds

Having cut my teeth with High-Yield (Junk) bonds back in the heyday of the era, when Drexel Burnham and Michael Milken ruled the kingdom from the famous X-shaped Beverly Hills trading floor (with Milken holding down the center point) and annually feted courtiers with what later became dubbed “The Predator’s Ball” (if you haven’t heard

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Click & Order is Killing the Old Brick & Mortar

Online retail is here to stay and it is only going to get bigger. We have witnessed a total reset of how things will be for a while. In my opinion, retail outlets could turn into glorified warehouses that become a destination to pick up your order, and that is the best case. Otherwise, they

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Is Inflation on the Horizon?

Let’s get this out of the way first and foremost, I am not an economist. I am not building and maintaining econometric models. I believe in markets and I believe that they are discounting mechanisms. For the most part they are efficient but not perfectly efficient. Given this, I like to use market based metrics

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Finding 2040’s FANMAG: Thematic ETFs for Long-Term Portfolios

FANMAG and FANMAG stocks are fine, but do these already-huge companies really have enough juice to give bona fide growth investors, especially younger investors, what they really need for the long-term? What they really need is to find their way to companies that will be the FANMAGs of 2030 or 2040. Global Thematic ETFs can

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Will Lucy Pull the Football on Value Investors… Again?

In last week’s post I wrote about the fact that following Charmain Powell’s FOMC press conference, it became clear that rates are likely going to stay lower for longer. This will have a direct impact on the fixed income portion of client portfolios, especially as it relates to the “income’ side of the equation. You

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Top 5 Industries Gaining From Virus Fears and Work From Home Trend

Online Everything – Work from home, delivery services, petcare, home goods etc.. Home Entertainment – Movies, Gaming, Social Media Biotechnology –  Online Stock Trading – capital markets Cleaning and Healthcare Products The virus is devastating to the economy in most of the world and yet there are bright spots to focus on as an advisor

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