Archive

One index's 'reconstitution' can often be a microcap kingmaker... Each year, the major stock indexes – from the S&P 500, to the Nasdaq 100, to offerings providers like MSCI – are all "reconstituted." This is a process when new members are added, and companies that no longer fit the index's criteria are removed. It might […]

• AAPL
• AMZN
• GIS
• LLY
• LMST
• MSFT

The 'At-Home Revolution' has meant more toys... and not just for kids. In early June, I wrote in Forbes that reduced travel due to the coronavirus pandemic has had trickledown effects. One big beneficiary has been golf and golf equipment. Wealthy people who would normally be vacationing in Europe, the Caribbean, or elsewhere are trapped […]

• GE
• KO
• PEP

Several household names all have something in common with some of the highest-upside stock ideas in the market right now... Even the largest companies have small beginnings.  Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Disney (DIS), Mattel (MAT), and Hewlett-Packard – now known as HP (HPQ) – all started in a garage. Facebook (FB) started in […]

• AAPL
• AMZN
• DIS
• EXPE
• FB
• GOOGL
• HPQ
• ISRG
• IYR
• IYZ
• MAT
• NFLX
• TRIP
• WMT
• XLY
• ZM

The 'impossible trinity' is one of the widely held beliefs in macroeconomic theory... Also known as the "trilemma," the logic is that an economy can't have all three of the following:  A fixed foreign exchange rate Free capital movement Independent monetary policy If you want two of these, you need to give up on the […]

• HD
• LOW

Even the largest businesses start small... Excluding banks and insurance firms, more than 100 companies in the U.S. have a market cap greater than $50 billion. These mega-cap names are world-beating businesses that dominate their industries. Some investors talk about how "network effects" and "scale" mean these companies are unstoppable, and they pile into the […]

• AAPL
• AMZN
• CRM
• FB
• GOOGL
• JPM
• NFLX
• SYY

Bloomberg appears to have missed the forest focusing on the trees when talking about the pandemic debt risks... Last week, a Bloomberg editorial examined whether the pandemic could also lead to a financial crisis. Regular Altimetry Daily Authority readers know that we've explained multiple reasons why the risks of the pandemic turning into a debt […]

• DVA

A week ago, we received a great question in one of our classes... We were teaching a remote class at Hult International Business School the weekend before the Independence Day holiday. One of the students asked a question that I thought particularly relevant for the current market context, with big swings happening almost every day. […]

• NTDOY
• SLB

Sometimes, it's good to put things in perspective... When I was growing up, one of the things I most enjoyed doing was collecting and looking at maps. It wasn't just about knowing where my family was heading on vacations... it was about understanding the scale of the world.  When you dive into geography, the most […]

• AAPL
• DAL
• HCA
• IT
• LUV
• MSFT
• ROST
• YELP

Joel's note: The Altimetry offices are closed tomorrow in observance of Independence Day, so look for the next Altimetry Daily Authority on Monday, July 6. I hope everyone has a safe and enjoyable holiday! The 'At-Home Revolution' is the only thing that's stopping Coke's dominance...  For years, authorities across the globe have been focusing on […]

• BURL
• HSY
• KO
• NSRGY
• PEP
• TJX

During a recession, there's a reason governments tend to send stimulus to those with lower incomes...  Not only are these folks more likely to struggle during an economic downturn, but any benefits sent their way are also likely to have a stronger "multiplier effect" in the economy. This means that for $1 sent to a […]

• AAPL
• GOOGL
• IBRT