We went too far too fast, especially with the technology stocks, and they are simply coming back down to earth. This much, frankly, is not all that insightful; it is obvious. What may be less obvious is what is happening underneath the surface.
Cash flow is the most important thing we look for when investing in a company, but it is also the most important element of financial planning. Many people refer to it as budgeting, but I do not like that term. Budgeting will get a person in financial trouble quickly.
“There’s gold in them thar hills!” Gold fever seems to be taking the markets by storm. The question is: Should one invest in gold? I believe the answer to that question lies in the very definition of investment.
For the last decade growth stocks have outperformed value stocks, large-company stocks have outperformed small-company stocks, and domestic-company stocks have outperformed international-company stocks. This is not sustainable and it will end; the questions are, how and when will it end?
Statues are falling, parts of cities are being taken over, and COVID-19 is reminding us that it is still around. So, are we headed for another large selloff? Not so fast.
