AWM Blog

This is an unprecedented buying opportunity

Clearly investors are panicking. Virtually all of the stock market investment theories are founded upon an assumption that investors are rational – that is a joke. Modern Portfolio Theory assumes that investors are risk-averse, meaning they will only take on additional risk if they expect to get additional return. When the market is “good” meaning it is going up consistently, investors assume unwarranted risks totally out of scale with the…

A Payroll Tax Cut is Vital

Yesterday’s Federal Reserve action – slashing interest rates to a range of zero percent to ¼ percent, and initiating a $700 billion quantitative easing program with $500 billion in treasury purchase and an additional $200 billion in mortgage-backed securities purchases, did not have the desired effect. Futures on Sunday night traded limit-down, when the 5% limit was hit, and global stock markets plummeted, with the Asian and European markets seeing…

Corrections are healthy and inevitable

The recent stock market correct has resulted in a 20%+ decline in the Dow Jones Industrial Average, with the Nasdaq Composite and S&P 500 dropping by almost as much. And it’s not over. As I sit here at 3:51 a.m. Thursday morning, March 12, 2020, watching the futures market, Dow futures are down more than 1,200 points, S&P 500 futures are down 126, and Nasdaq futures are down 374. As…

The real reason the market has been falling

We have been bombarded of late with stories about the coronavirus – how terrible it is, how countries are shutting down (like Italy), and how China has had to setup emergency hospitals to deal with the overwhelming numbers of new cases (although they just reported yesterday that they are shutting down these temporary facilities, assuming China can be believed). While I do not personally trust China’s reporting of data, whether…

Tesla is heading down the same path as WeWorks

I have written quite a bit, and posted multiple articles about WeWorks and about Tesla over the past year or so. I thought I would discuss the two companies in comparison, because I see some parallels in the trajectory of the two. First, if you are not familiar with WeWorks, it is a real estate company that leases properties under long-term contracts and then rents office space on short-term agreements,…

Thought for the day – make a list

Make a list of everything fun you want to do this year. Make another list of everything you want to accomplish. Put your lists on your refrigerator or on your desk, somewhere that you will see it each day. If possible, add milestones or steps you need to accomplish to achieve your goals or to get to do each fun thing. As you accomplish each item, cross it off of…