In our last edition of Insights, we contrasted the gap between the S&P7 and the S&P493, which continues to widen. Now, with an average P/E ratio of over 50, investors are willing to pay 50x the earnings generated by these companies over the last year. These valuations are starting to resemble those seen during the Nifty Fifty era and the tech bubble in March 2000.
Global Bonds Head for Best Month Since 2008 Financial Crisis
The current dovish shift in central-bank expectations has been a boon for corporate bonds. Spreads on investment-grade global company debt are hovering around the lowest levels since April 2022, according to a Bloomberg index. They have narrowed over the past month as investors rushed to snap up the securities amid increased optimism about a soft landing for the US economy.
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Making ESG Real: A Return to Values-Driven Investing
Michael Goldhaber discusses criticisms of Environmental, Social, and Governance (ESG) investing in his proposal "Making ESG Real." Goldhaber argues for prioritizing values over returns and calls for increased transparency, abandoning a single ESG rating, and clear fund goals. Practical challenges, like resistance and potential lower returns, may impede implementation.
Charlie Munger: the aphorism-loving, bitcoin-hating sage behind Warren Buffett
Munger, whom Forbes estimated to be worth $2.6bn, regularly doled out aphorisms that would be collected for books and video compilations by adoring fans. They included: “Capitalism without failure is like religion without hell”; “Without the method of learning, you’re like a one-legged man in an ass-kicking contest”; and “The best armour of old age is a well-spent life preceding it”.
A friendly reminder, to get an RRSP deduction for the 2023 tax year make sure to make your contributions within 90 days (i.e., before February 29th, 2024). We hope you enjoyed our curated insights for this month. If you found this interesting, feel free to share. For any inquiries, please reach out to our team.