The price-to-earnings (P/E) ratio has long held a lock on investors’ imaginations. So when it jumps to near 30, like it has in the last few weeks, they’re inclined to think stocks are pricey and pull back. Now is not the time to do that. Instead, we’re going to do what we always do at times like these: Look to a closed-end fund (CEF) that keeps us invested in stocks but gives us a hedge against a potential pullback. Three hedges, actually: The sale of covered call options, which generate extra cash for the fund, supporting the dividend it pays…

Investors holding the S&P 500 are on track to earn returns exceeding 25% for the second consecutive year. Driven by large-cap growth stocks, broad U.S. market-cap indexes have once again proven their value in stock portfolios. The S&P 500 continues to deliver impressive performance, but after consecutive years of outperformance, concerns are mounting about its ability to sustain this positive momentum. The S&P 500 year-to-date total return is 28%, powered by projected earnings growth of approximately 10%. This strong performance has pushed price-to-earnings ratios to their highest levels in two decades. Investors mindful of the SEC’s standard warning that “past…

For many years inflation seemed like the White Walker of economic worries. Elder economists muttered darkly of ancient times when the CPI rose by double digits, yet many a year had passed with no inflation sightings. Then 2021 happened. Suddenly, a new generation of economists witnessed firsthand just how central price stability is to American politics. Carola Binder was one of those young economists watching carefully. She was particularly struck by a Washington Post article in 2022 that asked experts what they thought the White House should do about rising prices. This seemed odd to her because dealing with inflation…

The November elections ushered in a new administration and a Republican sweep of the federal government with the party winning the White House, House of Representatives, and the Senate. Investors, investment bankers, and private equity have viewed the change in Washington as heralding a possible improvement in both mergers and acquisitions (M&A) activity as well as public equity issuance. The Biden Administration, led by Gary Gensler, the chair of the Securities and Exchange Commission and Lina Khan, the commissioner of the Federal Trade Commission, has restricted both public offerings due to a higher regulatory burden as well as legally challenging…

TABLE OF CONTENTSTHE COMPANYVALUING THE STOCKEARNINGSFINANCESDIVIDENDSCONCLUSIONShare to FacebookShare to TwitterShare to LinkedinThe outcome of the U.S. Presidential election can have significant ramifications for many companies. Indeed, for businesses that operate in industries and [,,,] Read the full article here

The cryptocurrency market continues to stir up bold predictions, with its latest coming from none other than Rich Dad Poor Dad author Robert Kiyosaki. In a cryptic post on November 25, Kiyosaki declared that Bitcoin price could hit $500,000 by 2025, adding the curious caveat, “according to AI.” “Q: what is price of bitcoin in 2025? A: $500,000 according to AI,” he wrote This is not Kiyosaki’s first foray into making ambitious forecasts about Bitcoin. Earlier this year, he predicted the cryptocurrency could reach $350,000 by August 2024. He has also hinted at the possibility of Bitcoin skyrocketing to $10…

On November 18th, the stock was featured favorably on the front page of Barron’s. Contrary opinion suggests that this exposure is a negative. Research conducted by Paul McRae Montgomery in the 1970s made the point. He reviewed the cover of 3200 covers of Time Magazine. Paul concluded that whenever an investment-related story appeared, the price of that investment moved in the opposite direction to that which the cover suggested. This occurred 80% of the time over the following four months. Note that the effect was increased when an investment-related story was on the cover of a non-financial publication. Paul reasoned…

First survival rule: Remember the wise Buddhist admonition which turns the typical Western adage on its head: “Don’t just do something, stand there.” It’s tempting when a macro shock like tariffs hits the system to think that the best next investment step is action—any action. Western action-oriented philosophy pressures us to think that something must be done, something must be changed: stocks reshuffled, bonds purged, crypto hoarded, shoddy bandwagons jumped on—in order to deal with the new reality. This is garbage. Nothing could be farther from the truth. It relieves tension and makes people feel better to take swift action…

Bitcoin’s price is up a notable 3.2% Wednesday morning, with analysts suggesting that the asset may have found a price floor. Bitcoin isn’t the only cryptocurrency benefiting from the upswing. Ethereum climbed 5.8%, and major altcoins joined the trend: Cardano gained 8.3%, Solana 3.5%, Dogecoin 4.3%, Shiba Inu 4.1%, BNB 2.4%, and XRP 6.2%. Bitcoin’s recovery coincides with increased activity from short-term holders. According to James Van Straten, senior analyst at CoinDesk, approximately $8 billion worth of Bitcoin recently moved to exchanges—indicating that the market may be nearing its bottom. “In notional terms, this is the highest number on record.…

Further growth in China could catalyze a valuation rerating for the company By Oliver Rodzianko Summary Lululemon’s near-term opportunity stems from its undervaluation, with China growth offering upside; strategic execution from management is key to exceeding the 8% annual revenue growth estimates. My January 2027 EV estimate of $57.99B implies a 19.85% CAGR; discounted intrinsic EV is $48.09B vs. current $39.14B, providing an 18.61% margin of safety despite U.S. revenue stagnation risks. Risks include reliance on U.S. revenues, execution challenges in China, and market reluctance to rerate the EV/EBITDA; geopolitical and macro headwinds in China add further uncertainty. Lululemon (LULU,…