Top 10 Posts from 2021: The Buffett Indicator, GameStop, Inflation!
1. The Buffett Indicator Revisited: Market Cap-to-GDP and Valuations
How useful is the Buffett Indicator really? Navin Vohra, CFA, shares his analysis.
2. GameStop or: Why the Short Sellers Win
The GameStop short sellers might have left the market, Joachim Klement, CFA, observes. But don’t for a minute think they are licking their wounds in defeat.
3. Beware the Bubble? The US Stock Market Cap-to-GDP Ratio
The Buffett Indicator is flashing red and has been for a while now, so caution is the watchword, Dhruv Goyal, CFA, writes.
4. Myth-Busting: Money Printing Must Create Inflation
Shouldn’t all the recent monetary and fiscal stimulus lead to higher inflation? Maybe not. Nicolas Rabener looks at the data.
5. Aswath Damodaran on the COVID Crucible: A Play in Three Acts
“In most crises, young companies suffer at the expense of old companies, risk-on companies get hurt more than risk-off companies,” Aswath Damodaran said late last year. “This crisis seems to have flipped the script.” Paul McCaffrey considers Damodaran’s insights.
6. Capitalism Is Dead, Long Live Debtism
Should a loan that one neither intends nor is required to repay be considered debt or equity? Sebastien Canderle weighs in on capitalism’s unusual modern trajectory.
7. Down the Rabbit Hole: A Cryptocurrency Primer
Bitcoin and cryptos are not suitable for all investors, but the world of digital assets may be more than a passing fad. A team of contributors from PNC explains.
8. Myth-Busting: Low Rates Don’t Justify High Valuations
Lower interest rates may not, in fact, lead to higher P/E ratios, according to Nicolas Rabener.
9. “Your Network Is Your Net Worth”: Seven Tips to Propel Your Career
Your social capital grows as the people you help today advance their careers and step into more senior roles tomorrow, Eric Sim, CFA, offers some lessons on how to be a better networker.
10. Eric Sim, CFA: The Diversified Career Portfolio
Diversification is just as critical to career portfolios as it is to investment portfolios and few career trajectory’s demonstrate that as well as that of Eric Sim, CFA, Paul McCaffrey observes.
Honorable Mention: While we have not historically included book reviews when calculating our best-of-the-year stats, the review by Robert N. Farago, ASIP, of Valuation: Measuring and Managing the Value of Companies, 7th Edition, by Tim Koller, Marc Goedhart, and David Wessels was our most popular book review ever.
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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.
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GameStop, DWAC, crypto are a symptom of greed, scammers, unrealistic promises, and bad fundamentals. GameStop to this day has no plans, no path towards becoming another Netflix. DWAC a merger with a Chinese scammer that had 3 of their stocks delisted seems to be just fine with investors. Crypto? Well i have looked up, asked, discussed all the reasons for its success and ground foundation for its very existence. I got NOTHING! No intrinsic value, not backed by anything, no transparency and no government rules and regulations. Dark money was the easy attraction. Tulip prices went up also and that took three years before it busted.
BTW Buffett himself recently DISMISSED his ow indicators by “claiming” low inflation allows for these distortions. The other golden rule all analysts believe in is that the last 40 years of deflation/disinflation with productivity gains for innovation and cheap labor is a given going forward. Inflation will be as insidious as the late 70’s to 80’s with one distinction, the world economies will never survive long enough to see double digit inflation again. A multi-decade winter is coming soon. One month to two years out. best guestimate.