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Why Financial Statements Don’t Work for Highly Innovative Companies

Several weeks ago three professors from the Columbia and Dartmouth business schools recapped some of their work on accounting for intangible investment in a Harvard Business Review article. Their key finding, which builds on Professor Baruch Lev’s analysis in The End of Accounting, is that, “accounting earnings are practically irrelevant for digital companies”. Along with Professor […]

Corrections Almost Always Test Lows Before They Are Complete

SPX Index (S&P 500 Index) Daily 2018-02-14 14-09-41

As we navigate a period of market turmoil, its important to remember that non-bear corrective phases typically last six weeks to two months and almost always include several substantial large rallies followed by selloffs back to the range of the initial low. Indeed, this classic give and take is how important bottoms are usually formed. […]