What Would a Rise in Mortgage Rates Do to Housing?

2021-05-04T17:25:03+00:00March 9th, 2021|Categories: INVESTMENT|

Executive Summary The current housing market appears to be booming with continually escalating prices. Substantially aided by the Fed’s low interest rates, rising home prices are disconnected from the Consumer Price Index, a proxy for inflation (see second graph below). The fifth graph in The Details demonstrates [...]

How Does the Crowd Exit All at Once?

2021-03-02T16:40:32+00:00March 2nd, 2021|Categories: INVESTMENT|

Executive Summary The quote below is from Warren Buffet’s long-time business partner, Charlie Munger, and speaks to the recent irrationality in the stock market.  One valuation metric used to evaluate the price of a stock is the price to earnings ratio.  Historically, the average P/E ratio for [...]