|
 |
Hi Partner 👋
It’s time for another Portfolio Update today.
What’s going on with our companies?
And which companies are the most attractive right now?
Let’s dive in right away.
 |
Mr. Market is in full speculative mode
We’re in very strange times right now.
No matter how you measure it, the market is very expensive.
 |
Momentum is incredibly strong right now.
The gap between momentum stocks and low-volatility stocks has never been wider.
 |
There’s also a lot of speculation in the market. Expectations are very high.
Analysts expect that the earnings of S&P500 will compound 24% annually for five years.
That’s double the historical norm and completely unrealistic.
 |
At the same time, Mr. Market is completely ignoring quality stocks.
Here’s the spread between quality and momentum:
 |
There are a lot of Quality Companies trading at decade low valuation levels today.
Think about companies like Mastercard, S&P Global, Novo Nordisk, …