by Gary Gordon | Nov 24, 2020
Jim Cramer, the boisterous TV host of CNBC’s circus-like investment show, “Mad Money,” rarely bad-mouths the stock market. You can count the number of times he has expressed concern about irrational investor exuberance on one hand. Today, however,...
by Gary Gordon | Nov 20, 2020
The investment community is not only willing to look beyond virus vaccination to economic nirvana, it is also willing to ignore extraordinary stock overvaluation. Consider the price-to-revenue metric. At 2.7x corporate sales, stocks have never been frothier. Another...
by Gary Gordon | Nov 17, 2020
What does it mean when a company has beaten earnings expectations? In theory, it implies that a public corporation is performing extremely well, justifying a higher price for its stock shares. The reality? Market analysts intentionally set the expectations bar near...
by Gary Gordon | Nov 13, 2020
What if your family owed more than it owned? You could get by for a while. You could “rob Peter to pay Paul.” Eventually, though, persistent negative net worth would likely result in a declaration of bankruptcy. The same holds true for corporations. The...
by Gary Gordon | Nov 11, 2020
Federal Reserve intervention is the reason that stocks defied a protracted bear market in 2020. The central bank of the United States immediately intervened in March, slashing overnight borrowing rates to 0%. The Fed also printed trillions of dollars to buy bonds,...
