Rotating out of the Rotation
This week we discuss if the rotation play is getting old, how we could be in an everything bubble, and how to value subscription businesses.
Dear Clients and Friends of Farrer Wealth Advisors, we are pleased to bring you the Farrer Wealth Biweekly Blast, which includes our latest blog posts, fun facts, and general articles we find interesting. Happy reading and happy investing!
Latest Blog Post
Rotate out of the Rotation - We’ve been wondering if the rotation play is getting long in the tooth and if on the growth side the market has thrown the baby out with the bathwater. In our latest blog post we discuss relative valuations, dangerous optimism in the recovery, and why it might be time to start looking at growth stocks again. Click here to read it.
Farrer Fun Fact
Cryptocorrection or Cryptocasino? After our previous post about how attending a cocktail party told us it could be time for a major correction in crypto, we couldn’t help but share this chart from the Visual Capitalist that shows previous corrections. This is not an asset class for the feint of heart, all these corrections (in Bitcoin) took place within the last 9 years!
Articles and Videos of the Week
In case you didn’t read our blog post this week (shame!), we reference this post by Gavin Baker that discusses how secular growth stocks are becoming increasingly attractive. Its our favorite read of the week.
We talk about crypto bubbles, growth bubbles, housing bubbles… but is everything in a bubble? This thread really got us thinking. (Thanks to the A Few Things blog for sharing).
Michael Mauboussin released this piece on how to think about customer-based corporate valuation, and is a must read for those investing in subscription businesses.
This author had a great post about how to use a fixed-income lens to stress-test your stock ideas, read it here.
We really enjoyed this authors thread on his investing lessons, and in particular his tweets about how to build a position based on value rather than price.