The Bill Is $2 Trillion. Nobody’s Wallet Is That Big.
Every bull case for this market runs through one trade. AI pays off. So let’s look at the ledger. The big five will spend roughly $600 billion on AI infrastructure this year, per their own guidance. Published run-rate estimates put AI revenue at about $60…
ProfitScore Update – June 2026
To the friends and clients of ProfitScore- For twenty years, the 60/40 ran on autopilot. Stocks fell, bonds rose, the losses got cushioned. Everybody slept fine. Then came 2022. The S&P dropped 18.1%. The Bond Agg dropped 13.0%, its worst year on record. The 60/40 fell about 17%, its worst showing since…
ProfitScore Update – May 2025
To the clients and friends of ProfitScore: Are We About to Get Paid Nothing to Own Stocks In our research, we are always trying to identify market risks. I present to you some analysis. The S&P just closed April at an all-time high of 7,209….
ProfitScore Update – September 2024
To the clients and friends of ProfitScore: At ProfitScore, our trading approach is guided by market Regimes. While various factors influence our specific trading decisions, understanding the market’s current state or regime is a key component in how we position our portfolio. Many of you…
ProfitScore Update – May 2024
To the clients and friends of ProfitScore:The Buffett Indicator Is Near an All-Time High Warren Buffet is often mentioned as the greatest investor of all time. Berkshire Hathaway, Warren’s investment company, has 189 billion dollars invested in cash equivalents. It’s the largest cash position in…
ProfitScore Update – January 2024
To the clients and friends of ProfitScore:See Saw as a Predictor? Last year, we witnessed a significant rebound in the market after a notably challenging period, which had experienced one of its worst years, particularly for a 60/40. This pattern often leads to the assumption…
ProfitScore Update – September 2023
To the clients and friends of ProfitScore: The Inverse Dance of Equities and VolatilityEquities and volatility, two vital financial metrics, often engage in a rhythmic dance, moving in opposite directions. Here’s a glimpse into their inverse relationship. The Inverse Tango: Historically, when stock prices (equities) rise,…
ProfitScore Update – July 2023
To the clients and friends of ProfitScore: One of the most fundamental and important parts of investing is achieving diversification through low or negative correlation. With the stratospheric rise in passive index investing, diversification is becoming harder and harder to find. Below is a chart…
ProfitScore Update – June 2023
To the clients and friends of ProfitScore: A recent study from the US central bank has set off alarms in the financial sector, signaling a record increase in American businesses under financial distress and the possibility of intensified ramifications from the Federal Reserve’s war on…
ProfitScore Update – January 2023
To the clients and friends of ProfitScore: January was a good month for both equities and fixed income. After finishing 2022 down more than -18%, the S&P 500 rebounded in January, posting a positive return of 6.3%. Similarly, the U.S. Agg, being down -13.01% for 2022, bounced…