Category: Insurance

Markets Have Another Leg Down

Markets Have Another Leg Down

This spring when I said the NASDAQ would bottom around 9,000 my thinking was as follows: 2022 would be a year where higher interest rates reset equity valuations lower, especially as it relates to the NASDAQ Composite. 2023 would be a year where poor company fundamentals reset equity valuations lower. The NASDAQ has experienced some … Continue reading Markets Have Another Leg Down

Wholesale Used-Vehicle Prices Decline Further

Wholesale Used-Vehicle Prices Decline Further

The Manheim/Cox Automotive team released its used vehicle price index through the first 15 days of October. Used vehicle values continued to decline as one would expect. We expect further declines this year and next as we wrote back in early October. Used vehicle valuations and sales are typically a leading indicator as it relates … Continue reading Wholesale Used-Vehicle Prices Decline Further

Allow Zombie Companies To Fail & Sanity To Return To The Markets

Allow Zombie Companies To Fail & Sanity To Return To The Markets

The Fed has created more zombie companies than any zombie apocalypse. The late great George Romero has nothing on the Fed. We are praying, crossing fingers and toes that the Fed will end QE and not support Government-led corporate bailouts with its money printing ability. Wishful thinking? Maybe. However, if nobody pushes back on the … Continue reading Allow Zombie Companies To Fail & Sanity To Return To The Markets

It Is Best For Companies To Be Conservative On Q3 EPS Calls

It Is Best For Companies To Be Conservative On Q3 EPS Calls

It is best for companies to be conservative with their Q4 and 2023 outlook on EPS calls. We are 1/6 through Q4 and Technology companies have to be seeing weaker demand today versus 3 and 6 months ago. Enterprise Technology companies are likely seeing deals of all sizes get pushed back in the pipeline - … Continue reading It Is Best For Companies To Be Conservative On Q3 EPS Calls

Inflation: Why We Have It & How To Fix It.

Inflation: Why We Have It & How To Fix It.

Price inflation is no great mystery. It's a function of Money Supply growth that is not tied to Productivity. The remedy is simple: The U.S. must spend less and produce more. Government spending was $6.8 Trillion in 2021, $4.5 Trillion of which (66% of total spending, 19% of GDP) went to Entitlements. The U.S. ran … Continue reading Inflation: Why We Have It & How To Fix It.

The Economic Genie Is Out Of The Bottle

The Economic Genie Is Out Of The Bottle

It does not matter what the Fed does with the Fed Funds Rate at this point, the global economy is softening and is likely to get worse. Whether the Fed ultimately takes rates to 3.5% or 4.0% will have little effect on the macroeconomic backdrop (QT is a different story). More job cuts. Large Tech … Continue reading The Economic Genie Is Out Of The Bottle

Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

Amazon (ticker: AMZN), announced that it plans to acquire healthcare provider One Medical (ticker: ONEM), for approximately $3.9 billion. Some of the analysis we have seen misses the big picture. One Medical has approximately 180 clinics: Amazon could incorporate additional clinics into its Whole Foods and Amazon Fresh locations, thereby growing the number of consumer … Continue reading Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

One Company Won’t Build The Metaverse

One Company Won’t Build The Metaverse

Meta Platforms (META) will not single-handedly build the metaverse, nor will Microsoft (MSFT), nor Apple (AAPL), nor Autodesk (ADSK), nor Amazon (AMZN)... We think of the metaverse as a series of interconnected digital worlds where people engage in recreational and commercial activity. Everything from gaming to purchasing a house to leasing commercial space, to buying … Continue reading One Company Won’t Build The Metaverse

Facebook and The Blockchain

Facebook and The Blockchain

Here is our follow-up to our recent article Facebook Will Be Next. We have stated on a number of occasions that social media companies such as Meta/Facebook and Twitter overstate the number of active users given that the active user metric is a self-reported figure and given that no outside firm has the ability to … Continue reading Facebook and The Blockchain