Dark Matter

This Week on The Compound

This Week on The Compound

This week on TCAF, Josh and Michael were joined by Julie Hyman of Yahoo Finance and returning guest Doug Boneparth of Bone Fide Wealth. They discussed the rising 10-year Treasury yield, the normalizing labor market, private equity’s push into 401(k) plans, the financial challenges for professional athletes, and the quantum computing stocks. (Listen)

INSIDE THE COMPOUND

Michael Batnick, writing at The Irrelevant Investor, addresses the issue of market valuations. While stock market valuations are likely extended, it’s not clear that the naive use of the CAPE ratio tells us anything useful.

To use a long-term average that goes back to the late 1800s is foolish for three reasons. First, we didn’t have CAPE data back in 1929. It was first “discovered” in the late 90s. The discovery of data in financial markets changes the very essence of it. Markets are not governed by the laws of physics. They’re alive. They adapt and evolve and adjust, like an micro-organism.

Michael Batnick

CHART OF THE WEEK

This is one of our favorite visualizations around year-end. In the accompanying post, Drew Dickson at Albert Bridge Capital discusses the continued outperformance of the U.S. stock market compared to the rest of the world.

MERCH

What better way to warm the heart of your favorite finance nerd than one of these Hawaiian shirts? They are a collaboration between The Compound and Tropical Bros. The best part is that 10% of all sales will be donated to No Kid Hungry.

COMING SOON

This week, Josh and Michael will be joined by returning guest and fan favorite JC Parets of All Start Charts.

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