GFM Network News


Specs and SPACs…

...and “how my idiot son quintupled his money in two months” (his words)

But the most absurd and preposterous of all, and which showed more completely than any other, the utter madness of the people, was one, started by an unknown adventurer entitled ‘Company for carrying on an undertaking of great advantage, but nobody to know what it is.’” The above quote is by Charles Mackay from a […] Read more

Free money … what’s not to love?

Free money … what’s not to love?

Investing for Fun and Profit: Leading to my 2021 market predictions

The essence of market economies is that millions of individuals making profit-oriented decisions, for the benefit of themselves, their families and communities, will allocate resources significantly more efficiently than government bureaucrats making the same decisions on behalf of millions of individuals. One of the key reasons is everyone’s circumstances are different and can therefore make […] Read more



“He who lives by the crystal ball will eat shattered glass”

Neither seer skill nor mathematical acuity are very important for market success

The quip in my column title was authored by Ray Dalio, a highly successful hedge fund manager, founder of Bridgewater Associates and successful author. I am writing near the end of a tumultuous year for a publication date early in what will hopefully become a year when life and the markets return to some level […] Read more


Why is simple so difficult?

Why is simple so difficult?

Following a consistent approach helps to simplify

In my former corporate life, I frequently lamented needless complexity with the refrain, “They have a never-ending ability to turn simple stuff into rocket science.” At one point, a CEO made the infamous statement that “complexity is our friend,” releasing a torrent of complexity from minions aiming to please. It is my belief that complexity […] Read more

The difference between an investment and a speculation

Speculations are often described as investments because that word has a more positive connotation

Differentiating between investments and speculations is more nuanced than distinguishing investments from expenses. Speculations are often inappropriately referred to as investments with the main similarity being both are purchased with the intent of profiting. The allure of speculations is their potential for quick and dramatic profit, but quick and dramatic losses are more probable. Let’s […] Read more


Why investment is one of the most overused words

Why investment is one of the most overused words

To be a true investment, the purchase must meet three criteria

Our city cousins almost unanimously believe a house is likely to be the biggest investment they will ever make. We have all heard this and many believe it to be true. Then, after purchasing a house, they often invest in renovations to increase its value, and, of course, they must invest in furniture to make […] Read more



Growth stocks have outperformed value by a wide margin … but will it last?

Growth stocks have outperformed value by a wide margin … but will it last?

Slow and steady wins the race

Market action this year has confounded and perplexed. Meaning, it has been pretty much business as usual, although with more exaggerated swings. The action should demonstrate more than ever that short-term market gyrations are completely unpredictable. Anyone who in late March publicly said the market would hit new records by summertime would have been promptly […] Read more

Value versus growth company valuations

Value versus growth company valuations

Being viewed as a growth versus a value stock is one reason why stock prices can be significantly more volatile than underlying earnings or cash flow

Companies are broadly divided into two categories: value stocks and growth stocks. Value stocks generally pay higher dividends, have slower growth rates and sell for lower valuations based on traditional metrics like earnings yield (the inverse of the more popular but less easily understood price/earnings ratio), cash flow yield and price-to-book ratios. Growth stocks exhibit […] Read more