How will the Pandemic’s Long-Term Impact on our Economy Affect You
As the economy slowly begins to emerge from the pandemic, investors may naturally have concerns regarding the long term economic impact.
June 25, 2020
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Insights
June 19, 2020
Sanity prevails as SEC saves potential equity investors from a world of Hertz
After a share price surge, Hertz Corporation petitioned for and initially received bankruptcy court approval to raise money via a common stock offering. This was a surprising turn of events for a company that recently filed for Chapter 11 protection. The typical bankruptcy process leaves equity holders with securities worth little to no value. Who would invest new money in a bankrupt equity?
May 25, 2020
Small Growth passing baton to Small Value
Small value equities are valued -38% below their 10-year average, while growth, defensive, low volatility, and ESG factors exceed the bubble threshold of +30%. This dispersion has reached a 20-year high, in line with the dot-com bubble. However, bubbles can last a long time with infrequent reversion catalysts.
November 12, 2019
Equity’s Credit Blindspot
Equity has a credit blind spot. 95% of Russell 3000 companies issue debt, 75% of which is sub-investment grade. Equity investors study stock price movements but often ignore credit market signals. However, when a company’s credit deteriorates, its equity follows.