Investment Gems

My boy Jerome. My boy Jerome and his relation with bears. Again, from WSB. This one is from the WTF section of the Market Huddle. One of the best business interviews ever: And, remeber: Have a nice week!

Sorrento was Friday’s headline trade. The company’s CEO stunned the world by claiming that Sorrento had a 100% efficient cure for COVID-19. Investors and speculators alike flocked to the company’s stock and sent the price to the moon. This is one of those cases where you have to act fast.…

It has been a couple o though weeks for people who think that economics should matter for asset valuations. Therefore, I’ve decided to start a wrap-up on wall street humor. Probably, an effective way to keep sane. I’m already guessing that Wall Street Bets (WSB) on Reddit will be a…

Summary Tankers were the trade du jour back in April. It was a hit-and-run trade, and now stock prices have corrected heavily. However, it seems that, with all the commotion around negative oil prices, investors have neglected a changing narrative in the industry. Photo: Mark Rain Article also featured on…

Summary The Fed’s move to placate the high-yield corporate bond market reinforced my conviction in the gold trade. Gold has performed very well. So well, that we are considering to take it to another level. We reviewed a set of gold producers to understand the most likely to benefit from…

Photo credit: Sam valadi The world is becoming increasingly faster, and so do markets. However, this seems to be getting a bit extreme. The market went from total euphoria in February to extreme depression in March, and now, at the beggining of April, it seems ready to come back with…

Picture credit: Federalreserve One thing is for sure, the Fed under J. Powel is a very different beast. Yes, his predecessors started the unconventional monetary policies that have become the norm. However, Powel has brought it to a whole different level by nationalizing the whole credit market (not the whole,…

Summary Assessing the duration of the lockdown is the real key to understand the impact on the economy. Industries a with high proportion of fixed costs will be more vulnerable to a long stint. We assess the possible impact of the lockdown on US automakers. Make no mistake. The current…

Photo credit: Federalreserve The credit market will be pivotal during the current crisis. In 2008, we had a problem in the credit market (Subprime mortgages), which made financial institutions move into credit tightening mode. Soon, that start cascading into the real economy. The current environment inverts that relation. The problems…

Source: Philip Taylor Gold underperformance during periods of panic is not new. If you look at the great financial crisis, you’ll see that the same happened then. The gold price peaked in July and then went on to lose 27% of its value. Source: Seeking Alpha More interestingly, gold then…