Do Interest Rates Matter?
As mentioned in the last newsletter and by like-minded analysts, current valuations point to an expensive US stock market relative to …
IPO Performance Overview
With Yelp, LinkedIn, Zynga, and Groupon completing IPOs in the past year and Facebook on the way, interest in IPOs seems to be surging. As with any investment strategy, my first reaction is to …
Valuing Real Estate (REITs)
In prior newsletters, I made the case for using the P/E ratio to value the stock market and to predict future returns. Now let’s apply the same analysis to real estate, or more specifically REITs …
The Value of Diversification
When I list “full diversification” as a core component of Mariposa’s investment strategy, what does that really mean? What’s the point of diversification?
2011 Year-End Valuations
As mentioned last year, valuation ratios such as P/E are not very useful in making one year market predictions. This is disappointing, since they do a fair job of predicting longer-term returns of at least 5-10 years …