2008 vs. 2020: What Happens When the Federal Funds Rate is 0%?

During each of the fourteen Federal Open Market Committee meetings from March 2020 through June 2021, Chair Jerome Powell and committee members have decided to leave the federal funds rate unchanged, at a target range of 0% to 0.25%.  With inflation on the rise and unemployment falling, the Fed instead revealed their plan to increase … Continued

September Slump Cools Investor Expectations: Fund Flows in Q3 2020

While the COVID-19 pandemic drove both equity and fixed income lower in the first quarter of 2020, a broad recovery took hold in the second and third quarters. Similarly, mutual fund flows continue to move toward bonds in record numbers. The chart below shows that through the end of Q3 2020, the S&P 500 Total … Continued

All Revenue is Not Created Equal with Brian Feroldi

FEATURING: BRIAN FEROLDI Revenue that is: 1) Recurring 2) High-margin 3) Recession-proof Deserves a MUCH higher P/S ratio than revenue that is: 1) One-time 2) Low-margin 3) Cyclical$MA is a good example of the former. $F of latter. Data by @ycharts pic.twitter.com/0REZHUcBTv — Brian Feroldi (@BrianFeroldi) September 21, 2020 Q: You’re constantly stressing the importance … Continued

Economic Update — Reviewing Q1 2020

The first quarter of 2020 was one for the record books. Major indices set all-time-highs in mid-February and extended an already historic bull market into 2020 before the spread of COVID-19 sent equity markets into a nosedive. Since then, investors have seen some of the best and worst single days in market history as investors … Continued