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.
Economic Insights
CORNELL CAPITAL GROUP
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
Download Memo as PDF Welcome to the first of an ongoing series of Cornell Capital Group quarterly investor memos. The purpose of these memos is both to reflect on the current financial market environment and to explain our future outlook. With the impact of COVID-19 on the markets, the past few months have been a
Back in April 2020, we introduced two new indexes – the Cornell Capital Group (CCG) Quarantine Index and the CCG anti-Quarantine index. The Quarantine Index was composed of what might be called, stay at home, work at home stocks. Typical companies were Amazon, Zoom, Netflix and Grubhub. The anti-Quarantine Index was composed of get up and
Download PDF There are two primary factors that affect expected returns for companies with high ESG ratings – investor preferences and risk. Although investor preferences for highly rated ESG companies can lower the cost of capital, the flip side of the coin is lower expected returns for investors. Regarding risk, the jury remains out on
On August 31st Tesla’s latest bull run ended when the stock closed at an all-time of $498.50 per share. At that price, the market cap value of Tesla was $464 billion, an amount greater than Ford, GM, Daimler, Volkswagen, and former number one Toyota put together. With Tesla approaching $500 billion, a level reached by
The tech giants are trading at valuation ratios that are close to unprecedented for such large companies. Currently, Amazon trades at a nosebleed price/earnings multiple of 122. Apple’s multiple is 33 which is extraordinary for a hardware manufacturer. Netflix clocks in at 84. Tesla leads the pack at 752, but
Using criteria based on environmental, social and governance (ESG) considerations has become an increasingly important aspect of investment decision making, particularly for high profile institutional investors. As of 2019, sustainable assets under management were estimated to be $30 trillion worldwide. The claim here is that the enthusiasm for ESG investing has been exaggerated for three
It is often said that once you have a hammer, everything looks like a nail. So be it with the big market delusion. Since Aswath Damodaran and I published our article “The Big Market Delusion,” evidence of the delusion has been popping up everywhere – at least in my opinion. The latest instance is the
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