Kailash Concepts

New piece! We're experiencing the first true "double-bubble" in modern history. Trillions of dollars are now invested in stocks with P/S ratios above 20x. History shows this is a precarious position and may be a recipe for capital destruction. https://lnkd.in/e5jdCgCc

The chart below is featured in our latest piece, "Is Capitalism In Crisis?" ↓ https://lnkd.in/gtjcg78r It shows the weight of firms trading at >10x Price/Sales within the Russell 3000 between 1978-today. Current levels have broken the 25% mark, approaching levels last seen at the height of the dot.com bubble. This signals extreme market speculation and concentration risk, as capital flows to a small number of firms sporting bloated valuations. Historically, increased market concentration in expensive firms preceded market vulnerability and corrections. Click the link below to subscribe to our newsletter ↓ https://lnkd.in/dC_jjzPp

The chart below is featured in our latest piece, "Is Capitalism In Crisis?" ↓ https://lnkd.in/gtjcg78r It illustrates Free Cash Flow Yields (FCF/EV) across various market benchmarks versus KCR's Model Portfolios. As you can see, KCR's Model Portfolios feature robust FCF yields, as these portfolios feature high-quality stocks at attractive valuations. The benchmarks, on the other hand, feature relatively lower yields - which signify expensive valuations. This dichotomy reflects the start differences between evidence-based active management and passive index vehicles, which increasingly feature a concentration of overvalued stocks. Click the link below to subscribe to our newsletter ↓ https://lnkd.in/dC_jjzPp

The chart below is featured in our latest piece, "Is Capitalism In Crisis?" ↓ https://lnkd.in/gtjcg78r It highlights the number of publicly-traded firms by market cap, which is heavily skewed toward small-caps and mid-caps. However, small-caps and midcaps contribute to a small portion of the market's total market cap. Meanwhile, just 14 mega-cap firms (>$500 billion) account for over $22 trillion of total market cap. These two charts underscore the extreme market concentration within a small number of firms, which has led to unprecedented distortions in valuations. Click the link below to subscribe to our newsletter ↓ https://lnkd.in/dC_jjzPp

The chart below is featured in our latest piece, "Is Capitalism In Crisis?" ↓ https://lnkd.in/gtjcg78r It shows the ratio of the market's largest firm by market cap (Apple) to the median stock in the market. Prior to 2020, this ratio had never exceeded 800x. However, as the chart above illustrates, that figure is now an astounding 1,700x. This points to extreme concentration and overvaluation, which has been exacerbated by the index bubble. We should also note that previous peaks in this ratio has preceded significant market corrections. Click the link below to subscribe to our newsletter ↓ https://lnkd.in/dC_jjzPp

The chart below is featured in our piece, "Could Paysafe Ltd (PSFE) Double Your Money via Digital Wallets?" ↓ https://lnkd.in/eu28z5yh It shows the average transactions and revenue per user of PSFE's digital wallet segment over the past 7 quarters. Not only have average transactions steadily risen, the average revenue has risen along with it - indicating both higher transaction volumes and potentially larger transaction sizes. With digital wallets capturing a growing share of both e-commerce and brick-and-mortar spending worldwide, PSFE’s rising user metrics point to ongoing potential for revenue and user engagement. Click the link below to subscribe to our newsletter ↓ https://lnkd.in/dC_jjzPp

Diversify your portfolio with ease! KCR's Model Portfolios offer a wide range of investment tools designed to help you build robust and well-rounded portfolios. Get started today to explore our simple and evidence based methods. https://lnkd.in/dBCKUeSt

New piece! Is Capitalism in crisis? In this piece we explore the indexing bubble and other factors that have driven extreme market concentration, pushing valuations to unprecedented levels. https://lnkd.in/es59JiaE

The chart below was featured in our piece, "Memes & Other Financial Dreams: The Case for Valaris Limited" ↓ https://lnkd.in/ec8V2Ybm It compares the 2024 returns of off-shore oil driller Valaris Limited (VAL) against more speculative-driven benchmarks. VAL shares declined 35% despite a relentlessly improving fundamental backdrop and bright future prospects for the offshore drilling industry. This precipitious decline occurred even as the company's backlog grew 81% to $4.1 billion. We believe that Valaris' sluggish performance can be attributed to market sentiment favoring speculative assets like Bitcoin and AI stocks over traditional fundamentals-based investments. Click the link below to subscribe to our newsletter ↓ https://lnkd.in/dC_jjzPp

The chart below is featured in our piece, "Is Excelerate Energy, Inc. (EE) a Hidden Gem Due to its Small Float?" https://lnkd.in/eiZWVA9p It highlights Excelerate Energy's extensive global footprint, with assets spanning across multiple continents. KCR is bullish on EE shares for a variety of reasons, including: - EE's proven track record - Strong global demand for LNG - Significant market share (the firm's FSRUs represent ~25% of global re-gasification capacity) EE's terminals are strategically placed to meet rising LNG demand - from North & South America to Europe and Asia. Also, the firm could potentially boast a moat more durable than Nvidia's. Click the link below to subscribe to our newsletter ↓ https://lnkd.in/dC_jjzPp