Today’s Insight is the third post we’ve written on VEREIT (ticker: VER). When we first wrote about and purchased the stock we included the caveat that “any number of things could create another wave of negative sentiment that could send the stock even lower.” Today we look back at what has happened since our initial purchase and what the future might hold for VEREIT.
Unless you have been living under a rock, all of our readers are probably aware that last week’s Powerball jackpot swelled to an all-time high of over $1.5 billion.Last week I was asked by a client whether buying a lottery ticket made sense from an odds perspective since the jackpot was so large. What I discovered along the way became the genesis for this weeks’ Insight.
And we’re off…by about 6%! The first week of trading in 2016 claims the honor of being the worst starting week on record for the S&P 500 Index in its long and storied history dropping by close to 6%! It was a rough week for sure, but how should it effect our investment outlook for the future?
Whether you are supporter of green energy or not, it is safe to say that this industry has some major tailwinds at its back.This sentiment has been widely adopted for some time now as money is being invested into clean energy for capitalistic and altruistic reasons. One could say that investors in this space are capturing two types of green.
We’ve all heard the saying “one man’s junk is another man’s treasure.” Well, for the junk bond market over the past few months the treasure has been conspicuously absent. Junk bonds have been under pressure lately, leaving many wondering how much more carnage there might be and what it might portend for other areas of the market.
The information age affords no shortage of data and metrics for those looking to track, quantify and predict economic activity. Yet, amidst all the complicated sophistication many of the metrics that have stood the test of time and are actually the simplest. The Misery Index is a great example.
Back in 2013, the term unicorn was coined to describe private technology companies that were valued at over $1 billion. At that time there were only 36 unicorns, but today that number has increased by almost 400% with 142 unicorns collectively worth over half a trillion dollars.
It is in the midst of economic and financial market turmoil that investors typical make their biggest mistakes, so by preparing ahead of time for those environments we can mitigate the risk of the regret-driven decisions that would cause major setbacks to our clients’ long-term objectives.
For those of you who have been working with us for any amount of time you know that philosophy, process and discipline are extremely important to how we manage money. We firmly believe that there is no silver bullet when it comes to investing.
Because so much emphasis is put on how to make money rather than how to keep the money you make, a lot of people fall prey to the rat race of working their entire lives but never feeling a sense of freedom to pursue their dreams and desires.
Roughly eight years ago the subprime mortgage lending crisis began unfolding here in the US, eventually leading to the global financial crisis and multiple years of economic hardship. Today the auto industry appears to be repeating these same sins of the past.