T2 Asset Management

Our Commentary

Oct 2020 Market Commentary

So, what's next from here? This is a question that comes up more and more as the stock market and the economy are more at odds than at any time we can remember. The simplest indicator of the relationship between the economy and the stock market is the so called "P/E Ratio." This is a simple ratio that has the price of the stock market on the top and the earnings of the stock market on the bottom. Normally, this should stay in a certain range
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Sep 2020 Market Commentary

How is this possible? This is a question we have been asked often in the last few months. How is it that an economy with a loss of 20 MILLION jobs in just a few months combined with locked up global economies, has a stock market at all-time highs? Let’s not forget, you can’t even travel to Europe if you wanted to. Cruise in the Caribbean? Ha! We’ve lost 20 MILLION jobs in hospitality, leisure, travel, restaurants, bars. You name it, if it was a service industry, it was decimate
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Aug 2020 Market Commentary

Welcome to the Twilight Zone! As we write this, the S&P 500 looks poised to hit an all-time high in the next few hours. The alternative title for today's commentary would have been, "lt's deja vu all over again," as we seem to have travelled back in time to the dotcom boom. Not only do the markets seem to have just one direction now, but like then, it’s just a handful of stocks making the rise. FAAMG as it's now called (Facebook, Apple, Amazon
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May 2020 Market Commentary

It just keeps getting stranger! The S&P 500 Index is now less than 10% from its all-time high. Indeed, the Nasdaq composite is positive for the year! We have certainly seen the markets do some conflicting things over the years, but this one takes the cake. We do not need to recount here what has been happening to the U.S. over the last month, and frankly, we find ourselves tired of hearing the C-word on the news.Let’s start with the economy. Last month we saw the worst payroll number i
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April 2020 Market Commentary

Well, we've been looking at markets for a long time, and this is a new one on us. We have now just experienced the fastest bear market (-20%) decline in history, as well as the fastest increase in jobless claims ever recorded. We had been saying for some time that the market was overvalued and was looking for a reason to sell, but no one was predicting this outcome. We truly hope that our readers had been moving to protect some of their assets over the last year as we advised.
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March 2020 Market Commentary

Well that escalated quickly! We found it to be quite the head scratcher a few weeks ago when this coronavirus popped up, and it seemed that the stock market couldn’t care less. Ah, the blissful times just 20 days ago when all news was good news and the market could only go up. What a difference a few short weeks make. Anyone with a working television is probably aware that the stock market has fallen nearly 25% in a very short period as the economic impact of this virus is assessed. A
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