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By Michael Hlinka

            In March’s column, I noted that sanity was returning to the stock market, and now I think I want to take it back. Right now, the market seems irrationally exuberant when it comes to some of the ultra large-cap names. In many cases, these names have exhibited, at best, above average growth over the past few years. At the same time, there’s a legion of smaller companies trading at prices similar to their COVID lows.

By Michael Hlinka                                          

           In March’s column, I warned about sanity returning to the stock market. Risk premiums were returning to more normal levels, which meant a pull-back in many stocks, in some cases moderate, on other cases extreme. That correction has largely taken place.

By Michael Hlinka                                          

            There’s an investing strategy known as a “paired trade”. This happens when an investor finds two companies with relatively similar profiles; they typically compete in the same industry with similar strategies and are approximately as risky (or volatile as measured by beta). One stock is purchased with a similar dollar amount shorted, in the belief that if markets go up, the long will appreciate more than the short, and if markets go down, the short will sell off more than the long. 

By Michael Hlinka                                          

            I’ve been at this for half the year now, and 20-20 hindsight, I realize that I should stipulated a couple of things at the git-go. On both my long and my short selections, I should have established a 25% threshold if I was ever wrong…

By Michael Hlinka                                          

         When you buy a share in a company, you’re purchasing a portion of its current and future profits. Because of this indisputable fact, I tend to believe the “A bird in the hand is worth two in the bush” perspective… What does this mean in simple English?