ARE RECORD STOCK BUYBACKS APPROACHING AN “EMPTY TANK”! Warren Buffett is well known for comparing stock prices to GDP to assess whether stocks are becoming over-valued with inherent levels of excess risk. Stock buybacks this year continue to be financed with corporate leverage. However, the question is how much more leverage can corporations take on […]
MM Fundamentals
SINCE 2014 OVER 35% OF S&P 500 VALUE CAME FROM 5 TECH COMPANIES
SINCE 2014 OVER 35% OF S&P 500 VALUE CAME FROM 5 TECH COMPANIES The US stock market, or at least the S&P 500, is inextricably tied to the present and future of disruptive technology. Disruption at global scale can add as much market value as a much larger but old-school business even if the latter […]
A PERILOUS ENVIRONMENT FOR CORPORATE EARNINGS
A PERILOUS ENVIRONMENT FOR CORPORATE EARNINGS The salient point from the Q1 Earnings season is that the results have not been bad enough to stop the U.S. stock market from getting back to an all-time high. Companies that disappointed were strongly punished (with Google parent company Alphabet the latest and most spectacular example), while those […]
A LITTLE UNDERSTOOD ELEMENT OF FUNDAMENTAL LATE CYCLE INVESTING
A LITTLE UNDERSTOOD ELEMENT OF FUNDAMENTAL LATE CYCLE INVESTING We do a lot of Cycle work at MATASII.com as it is a critical element in developing our Strategic Investment Insights (SII) & Watch Lists. What few fully appreciate and is critical to cycle timing is: Contrary to popular belief, a deceleration of GDP growth is […]
HERE’S WHY RUSSELL 2000 COMPANIES ARE INCREASINGLY UNPROFITABLE
HERE’S WHY RUSSELL 2000 COMPANIES ARE INCREASINGLY UNPROFITABLE Why is an increasing percentage of Russell 2000 companies unprofitable? It is the diminishing marginal utility of debt. In this case, more and more debt is required to add what looks like less and less profit. Inflation has become the counterfeiting of credit. It’s a fraud, where […]
THE MARKET’S “ZERO CORPORATE TAXES” SUGAR HIGH!
THE MARKET’S “ZERO CORPORATE TAXES” SUGAR HIGH! Twice as many companies are paying zero taxes under Trump tax plan. In its first year, the number of companies paying no taxes went from 30 to 60. The Tax Cuts and Jobs Act lowered the corporate tax rate from 35 percent to 21 percent. Examples include Market […]
PREPARE FOR THE COMING “EARNINGS RECESSION” SCARE
PREPARE FOR THE COMING “EARNINGS RECESSION” SCARE Start bracing yourself for an earnings recession, with first-quarter numbers for the S&P 500 expected to suffer the first decline in nearly three years (begins today with JPM & WFC – but the busiest period will start the week of April 22 and run through May 3, when […]
THE “JAWS” WILL BEGIN TO CLOSE IN APRIL WITH EARNINGS GUIDANCE
THE “JAWS” WILL BEGIN TO CLOSE IN APRIL WITH EARNINGS GUIDANCE MATASII RESEARCH ANALYSIS & SYNTHESIS: Is the bond market right in anticipating a period of acute deflation and/or recession, or is it wrong and stocks, which are less than 5% below their all-time highs, correct in their optimistic outlook? There have been two conflicting […]
CORPORATE FUNDAMENTALS DISCONNECTED WITH ‘BAKED-IN” FUTURE REALITY
CORPORATE FUNDAMENTALS DISCONNECTED WITH ‘BAKED-IN” FUTURE REALITY MATASII RESEARCH ANALYSIS & SYNTHESIS: The problem with current Corporate Fundamentals is: 1- RISING LABOR COSTS & LOST PRICING POWER A big part of the past decade’s spike in corporate profits came at the expense of workers, who saw real wages stagnate while the cost of living rose. […]
APRIL 2019: MARKET VALUATION PERCENTAGE
APRIL 2019: MARKET VALUATION PERCENTAGE MATASII RESEARCH ANALYSIS & SYNTHESIS: The US Equity markets are still close to being overvalued by 100% based on an aggregated composite of Arithmetic & Geometric measures. These Include the Crestmont P/E. the Cyclical PE 10, the Q Ratio and the S&P 500 Composite from its Regression [SITE INDEX […]