Johnny Russell, CFA

Not-So-Boring Bonds

Not-So-Boring Bonds At the top of 2022, we wrote that stock market multiples were precariously perched after soaring well above historical averages. Since then, multiples have pulled back to more benign averages: Source: J.P. Morgan Asset Management, Guide to the Markets, 12/15/2022 We had also noted that after a relatively calm year in the S&P…

Would You Buy All of the Bitcoin in the World for $25?

The recent debacle at FTX and the broader selloff in cryptocurrencies over the past year have us thinking a lot about our investment discipline and why we believe in owning productive assets. What makes for a good investment strategy? In our view, the simple answer is to buy productive assets. No doubt there are a…

Discounted Cash Woes

Discounted Cash Woes It’s earnings season on Wall Street, an opportunity for investors to peer into the latest financial results of publicly traded companies. When Amazon reported earnings on October 27th, the stock dropped about 20% the following day. Joe Weisenthal at Bloomberg quipped that after looking at their numbers, “back-of-the-envelope math would suggest that…

Economic Tug of War

Economic Tug of War On Wednesday August 10th, the stock market rallied on news that inflation, as measured by the Consumer Price Index (CPI), may be starting to cool down. The YoY increase in CPI for July of 8.5% was down from the 9.1% print for June, a welcome change in direction and a lower…