As we’ve argued in the past, the Fed is irrelevant. The market has already driven interest rates up in response to Trump’s election and a more positive economic outlook.
As tireless advocates for the importance of Return on Invested Capital (ROIC), we’ve been encouraged to see a growing appreciation for the metric. Unfortunately, many investors may be relying on flawed calculations of ROIC.
We think investors’ expectation for the fiduciary standard is here to stay no matter what the official rules say -- and those investors will increasingly demand that their advisers apply to their non-retirement accounts too.
The Fed needs to acknowledge that it’s no longer in the driver’s seat and stop with the vague hints about “normalizing” monetary policy. Low interest rates are the new normal, and there’s nothing the Fed can do about that fact.
There are four groups that would disproportionately benefit no matter who wins the presidency. This special report analyzes which stock in each group offers investors the most appealing risk/reward profile.
Much has been made of the candidates’ sharp differences, but there’s one area where they have put forward remarkably similar plans. Both candidates agree: repatriate offshore cash, invest in infrastructure
Endlessly debating the actions of the Fed, either by political candidates or financial talking heads, has become a sideshow that distracts from the real workings of the economy and the stock market.
It’s time to consider a new paradigm for interest rates – a paradigm where treasury rates remain ultra low and riskier investments are priced by a decentralized market instead of a central bank.
Non-GAAP earnings are back in the crosshairs. 15 years after the Enron scandal first prompted the SEC to create rules for non-GAAP metrics, the proliferation of these pro forma results have led to renewed scrutiny.
The internet economy may be in the early stages of transforming our daily lives, but it’s already wreaking havoc on economic policy. As mentioned at the top of this piece, the Fed cannot manage to hit its 2% inflation target no matter how hard it tries, so maybe it should stop trying.
Could these traditionally safe stocks be dangerously overvalued and setting up for a crash? And if so, how should investors manage their portfolios to mitigate this risk?
Shares of Skechers (SKX) plummeted over 20% last week. We think the markets are overreacting to a limited data set. Not only do quarterly results tend to be volatile, one three-month reporting period is rarely enough to establish a clear trend.
The big banks still have significant advantages. Their brand names, financial capital, advisor networks, and large client bases give them the opportunity to leverage the innovations of startups and become the biggest winners in this new wealth management model.
2Q16 results reinforce our belief that Netflix no longer has a significant competitive advantage. When it tries to raise prices, as it did for many long-time members this quarter, it loses customers to rivals such as HBO (TWX), Amazon Prime Video (AMZN), and Hulu.
Overpriced acquisitions are far from a new phenomenon, but they’ve been especially prevalent in recent months. As a result, we’ve gathered some ideas about the various reasons companies ignore the evidence and continue to overpay for acquisitions.
We’ve created a new Model Portfolio, one that only includes those companies that not only receive our Very Attractive rating, but also tie executive compensation to return on invested capital (ROIC). Tying executive compensation to ROIC is important as ROIC is the primary driver of shareholder value creation.
Norway’s Sovereign Wealth Fund announced that it is looking to restructure compensations plans at certain companies in its portfolio. As the fund looks for a company it can target, we offer a candidate: Lions Gate Entertainment (LGF).
Sally Beauty operates in an industry that tends to be recession-proof. What’s more, its cheap valuation and recent changes to executive compensation position the stock to outperform in the long term.
There are some genuinely good examples of shareholder activism out there. In the right context, activist investors hold management accountable and play a beneficial role in the market by ensuring that poor corporate governance and strategy don’t persist.
We’ve been sounding the alarm on non-GAAP earnings for several years now. Companies exploited the wide leeway granted by the SEC to present their business in a more favorable light.