Long-time readers know that I have always been a fan of pipeline partnerships. In fact, when presented with the opportunity to discuss one of my highest conviction investments years ago, I served up Energy Transfer Partners (ETP). As I explained at the time of the general recommendation, however, I never "buy-n-hold" any asset. It follows that as attractive [...] Continue Reading...
There is a piece at CNNMoney.com about the current disdain for stocks being a replay of the early 80s. It is true that stocks underperformed bonds in the 1970-1979 period, and that investors fled stocks by the billions shortly thereafter (1979-1982). It is also true that stocks rallied from 1979-1982 with an annualized return of 16%. And it [...] Continue Reading...
Many writers like to discuss the concept of reversion to the mean. For instance, if the P/E ratio for the S&P 500 is trading at a 25%-plus premium to its historical average of 15, stock prices might fall dramatically to restore the P/E balance. Similarly, there have been many times when the heralded benchmark has traded at a 15%-20% discount. Even [...] Continue Reading...
