Many of today’s investors, particularly the young aggressive Robinhood types, want big returns, and that is something more than the stock market, or the average stock, can provide. Read the academic literature, or Aswath Damodaran’s blog, Musings on Markets, and you will learn that investors can expect a return of about 6% per year on
Economic Insights
CORNELL CAPITAL GROUP
BRADFORD CORNELLANDERSON GRADUATE SCHOOL OF MANAGEMENTASWATH DAMODARANSTERN SCHOOL OF BUSINESS Share 0 Tweet 0 Download PDF Abstract For much of the last century, value investors considered themselves to be the winners in the investment world, a result they attributed to their patience, maturity and good sense. That view, at least on the surface, was backed
Tweet 0 Share 0 Given the intense interest in the relation between stock prices, interest rates, and inflation, it is worthwhile to review basic concepts that tie them together. To start, it is critical to be clear what is meant by the interest rate – is it real or nominal? To review the difference, the
With all the talk about Bitcoin, at Cornell Capital Group we thought it is time to delve into the data. The data sample employed in the analysis consists of the daily returns on Bitcoin, the NASDAQ Composite Index, GLD (an ETF that tracks the price of gold), Tesla, and Amazon from January 1, 2015 through
Download Memo as PDF Expectations and Investment Returns To provide perspective on investing in 2021, at Cornell Capital Group we start with a fundamental concept from finance theory. The theory states that if a company performs according to the cash flow expectations reflected in the current market price of the stock investors will earn a
At a conference on quantum computing and finance on December 10, 2020, William Zeng, head of quantum research at Goldman Sachs, told the audience that quantum computing could have a “revolutionary” impact on the bank, and on finance more broadly. In a similar vein, Marco Pistoia of JP Morgan stated that new quantum machines will
At Cornell Capital Group we think that simple stock price indexes can provide insight into how the market has moved in the past and maybe even how it might behave going forward. For this reason, shortly after the onset of the Covid pandemic we introduced the CCG Quarantine Index, followed by the CCG Anti-quarantine Index.
In a famous editorial published in the Wall Street Journal, Warren Buffett and Jamie Dimon, the chairmen of Berkshire Hathaway and JP Morgan respectively, took the stock market to task for being too short-term oriented. The authors state that “This announcement today builds on the Commonsense Corporate Governance Principles that business leaders developed in 2016.
Most stock valuation chatter on the internet focuses on companies with great growth opportunities like Zoom, Wayfair and Peloton or well known companies whose stocks have outperformed like Apple and Amazon. Here we take a look at the other side of the coin and present a valuation of Exxon. Needless to say, the past few
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