If fiscal theory is right, even bigger federal deficits under President Trump could reignite inflation. It’s a good time to buy TIPS. By William Baldwin, Senior Contributor What drives inflation? Too much money, say the monetarists. When growth in the money supply exceeds growth in output, Milton Friedman declared, prices go up. That’s not quite right, say some dissident economists gathering under the banner of “fiscal theory.” The bigger factor, they say, is deficit spending. More precisely: federal deficits unaccompanied by any prospect of an eventual paydown. If the fiscal theorists are right, the future for holders of the usual…

Mega-caps have been in the spotlight, but the so-called Trump trade is making America great again for small cap stocks. Some could be attractive takeover targets for flush private equity firms. By Hank Tucker, Forbes Staff Donald Trump won the presidency and Republicans took control of the Senate last week in part by constantly reminding Americans of how much more they’ve paid for basic groceries during the last four years of high inflation, so it may come as a surprise that one of the fastest-growing small-cap companies in the U.S. sells the most expensive eggs in the supermarket. Since it…

Fresh off last month’s successful catch of a rocket booster, SpaceX’s second-in-command voiced her support for regulatory reform Friday. At the same time, she called for more competition in the space industry. “Regulation in the United States—and globally, with the exception of maybe China—is slowing technology down,” SpaceX President and COO Gwynne Shotwell said at the 2024 Baron Investment Conference at New York City’s Lincoln Center. “We’ve got to move faster.” SpaceX and Tesla CEO Elon Musk, the richest person in the world with a net worth topping $300 billion, has been a longtime critic of what he contends is…

The insurance titan released its 3rd-quarter portfolio update, revealing new buys in a pizza chain company and a pool supplies company By GuruFocus Insights into Berkshire Hathaway’s Latest 13F Filing Warren Buffett (Trades, Portfolio), often referred to as “The Oracle of Omaha,” is a towering figure in the world of investing. As the Chairman of Berkshire Hathaway, he transformed a modest textile company into a colossal conglomerate, primarily focusing on insurance and other diverse investments. Buffett’s investment philosophy, deeply influenced by Benjamin Graham, emphasizes understanding a business deeply, investing in companies with favorable long-term prospects, and purchasing at a significant…

Week in Review Asian equities were mixed for the week as Hong Kong and Korea underperformed and Pakistan and Singapore outperformed. Singles Day ended this week with a bang as parcel deliveries increased +9.7% year-over-year (YoY) during the sales festival. Tencent reported Q3 earnings this week, meeting analyst expectations, as Alibaba, JD.com, Bilibili, and NetEase also reported. The founder and Chairman of battery giant CATL said that he would open a US facility, if the US government would allow it, nodding to the incoming Trump administration. Alibaba Earnings Overview Alibaba announced results for the third quarter this morning. The company’s…

I was recently speaking with a couple where one partner made significantly more money than their other half. The person who made more asked me how household expenses should be divvied up. Whether married or unmarried, every couple needs to find an arrangement that works well for them and their relationship. Too often, assumptions and lack of communication can lead to someone feeling resentful and the relationship being at risk. This is how to manage household expenses with a large income gap. Communicate In the earlier example, the partner making more money had previously resorted to covering all the household…

Weather predictions is not something you hear much about as a mean of outperforming in the markets. Investment ideas go down the thesis route, where theories are expounded and extrapolated on how trends will drive prices. This is why tech is the 800-pound gorilla when it comes to stocks because there is nothing like new technology and its connected disruption to grab attention and drive excitement. However, weather is not so gripping. But wait, climate change is all about weather and the world has been dramatically pivoting around the potential catastrophic potential for that. I’ve been talking a lot with…

JD.com Earnings Overview E-commerce giant JD.com reported its Q3 financial results after the close in Hong Kong. The results largely exceeded analysts’ expectations. In the press release, CEO Sandy Xu commented that the company is benefiting “as overall consumer sentiment continued to brighten.” JD is a direct beneficiary of government subsidies for home appliances, serving as the online “Best Buy of China.” CFO Ian Su Shan commented that “China’s government-backed trade-in programs in over 20 provinces and cities…have been launched on JD.com”. He also commented on the rise in revenues “resulting from a rebound in growth of electronics and home…

As we income investors roll into Trump 2.0, it’s time for us to “flip the script” on the trades that have worked for us over the past two years. Things have the potential to get wild. Fortunes made; retirements lost. Let’s re-calibrate to make sure we own the stocks that will benefit most from the Trump 2.0 presidency. Yes, I emphasized equities intentionally. Fifteen months ago, we contrarians started the bond bandwagon. It’s hard to believe now, but back then, the financial suits hated fixed income. We faded their fears, bought bonds and benefited. Now, however, the fixed income trade…

By Yiannis Zourmpanos Summary Meta’s Q3 2024 revenue grew 19% YoY to $40.6 billion, driven by strong ad performance across Facebook, Instagram, and WhatsApp. Ad revenue reached $39.9 billion, increasing 19% YoY, boosted by AI-driven ad targeting and improved ad impressions. Net income rose 35% YoY, with profit margins expanding to 43% due to disciplined cost management and operational efficiencies. Meta’s Reality Labs posted a significant loss as investments in metaverse technology continue, but core business profitability absorbed these costs. Meta’s fair value is estimated at $734, offering a 22.13% margin of safety based on DCF projections, despite high CapEx.…