In October, equities saw increased volatility due to the looming U.S. presidential election and a sudden rise in COVID-19 infections. With only one day left until the U.S. presidential election, many market participants will be glad to have this event in the rear-view mirror. The media has spent the last few years building up the […]
The 2020 U.S. presidential election is less than one week away and given the high stakes nature of this election, we wanted to provide some analysis of past elections and the implications they had for the stock market. In an effort to provide some historical context for the upcoming election, the following data points were […]
In September equities finally took a breather after reaching all-time highs earlier in the month. As many were expecting, tech stocks led the decline as they have moved significantly higher over the past six months. We view this as a normal market correction and expect stocks to retest their early September highs. Going forward, the […]
August was yet another strong month for equities as investors continued to rotate into the asset class from cash and fixed income. Despite the continued uncertainty from COVID-19 and a looming presidential election, a major policy announcement from the Federal Reserve opened the door for stocks to continue their run higher during the month. On […]
By Will Heasman Daniel Lugasi, portfolio manager at VL Capital Management, predicts a “rapid decline” from Bitcoin should a second wave unfold, forcing countries back into lockdown. “If lockdowns were not implemented in the wake of a second wave of coronavirus, then we would not expect much of a decline in Bitcoin prices from current […]
By Barbara Friedberg The daily compounding of levered inverse ETFs will quickly destroy capital when these funds move against you. Their volatility is a reminder that inverse ETFs are to be used strictly as short-term trading vehicles, says Daniel Lugasi, portfolio manager at VL Capital Management in Orlando, Florida. — Read the Full Article
U.S. equities continued to move higher in July despite rapidly rising COVID-19 infections across the country. On July 16th, daily reported COVID-19 cases hit an all-time high of 77,255. Our view is that stocks can continue higher in the face of rising cases of COVID-19, provided mass lockdowns are not reinstated. We believe that small […]
By Christopher Hamman Growth stocks, particularly technology stocks, have outperformed the broader stock market since the lows in March. The general consensus is that large-cap technology stocks are most insulated from the coronavirus pandemic because most do not have direct exposure compared to retailers, for example. This shift has propelled technology stocks to all-time highs […]
Stocks managed to post small gains in June despite rising volatility from a potential second wave of COVID-19. In a report on June 5th, U.S. job gains for May surprised to the upside, increasing by 2.5 million while economists were expecting losses of 8 million. Additionally, U.S. retail sales jumped a record 17.7% in the […]
U.S. stocks continued to recover in May as states began the process of reopening their economies following nationwide lockdowns from the COVID-19 outbreak. As of May 28th, over 40 million jobs have been lost in the U.S. during the past ten weeks, which represents the most rapid rise in unemployment in U.S. history. Fortunately, the […]
April saw U.S. stocks post their best month in over thirty years, which unfortunately came against the backdrop of severe losses experienced the month prior. As of April 23rd, a total of 26 million jobs have been lost in the U.S. over the five weeks since the COVID-19 outbreak began. While the rate of job […]
March marked one of the most volatile months on record for U.S. risk assets. On March 16th the S&P 500 Index fell 11.98%, which was the third largest daily percentage loss in history. The unprecedented volatility over the past month was primarily the result of the global spread of coronavirus (COVID-19) and the associated shuttering […]
February marked one of the most rapid corrections for U.S. stocks in recent history. In early January, we alluded to the strong possibility of a 10-15% correction in the first quarter of 2020. With this correction now underway, we believe buying opportunities will present themselves as markets move lower. While we were relatively unfazed by […]
U.S. equity markets initially got off to a strong start in January, which was bolstered by the signing of a long-awaited phase-one trade deal with China. Unfortunately, the rally did not last long due to the outbreak of Wuhan coronavirus in mainland China. As a result, the last trading day of January was the worst […]
In December, U.S. stocks rallied to end the year with the largest gain since 2013. A strong jobs report, a delay of tariffs, and a further rise in consumer sentiment created the perfect storm that pushed markets to record highs during the month. The December 6th employment report by the U.S. Labor Department showed a […]
In November, U.S. equities powered higher for a ninth month this year, which was driven by improving prospects for a China trade deal, a “wait and see” stance from the Federal Reserve, and rising consumer sentiment figures. While a phase one trade deal between the U.S. and China has still not been signed, both sides […]
U.S. stocks continued their trek higher in October, which was fueled by better than expected corporate earnings, traction with China on a trade deal, and an additional interest rate cut by the Fed. Many market pundits had expected third quarter corporate earnings to take a hit from trade-related headwinds, but in fact close to three […]
In September, U.S. stocks rose for a seventh month this year, which was driven by improving investor sentiment on the heels of yet another Fed rate cut. As many market observers expected, the Fed cut interest rates by another quarter point on September 18th. Given the trickle of weakening economic data being released, we believe […]
In August, U.S. stocks posted their second monthly decline of 2019 with major averages down approximately 2%. The volatility in August was primarily driven by the trade war with China spiraling into a tit-for-tat exchange. Following President Trump’s August 1st announcement of additional tariffs on Chinese goods, the Chinese countered with a fresh round of […]
U.S. stocks notched their sixth monthly gain for the year in July. Better than expected corporate earnings from many companies helped to push markets to record highs during the month. Additionally, the expectation of an interest rate cut by the Federal Reserve materialized on July 31st with Fed Chairman Jerome Powell announcing a 0.25% interest […]
In June, U.S. stocks posted their best performance of the year and their best June performance in decades. Early in the month, U.S. Federal Reserve Chair Jerome Powell hinted that the Fed is considering rate cuts in the face of stubborn inflation figures. This was by far the largest positive factor driving stocks during the […]
U.S. stocks fell sharply in May, which was primarily driven by an unexpected reversal in the trade talks with China. After markets closed on Friday May 10th, President Trump announced that he would be increasing tariffs on certain Chinese goods to as much as 25%. With the belief that a trade deal was imminent, this […]
U.S. stocks rose for a fourth straight month this year to hit a record high in April. The upside in stocks over the past month was driven by a variety of factors. For one, corporate earnings came in stronger than expected, which further dispelled fears of an imminent recession. Also, a trade deal with China […]
U.S. stocks continued their run higher during March to cap off the best quarterly performance for equities in the last decade. While economic data continues to be mixed, U.S. consumer sentiment showed significant improvement in March. Consumer spending comprises almost 70% of the U.S. economy and therefore is crucial to sustained economic growth. We continue […]
By Barbara Friedberg Short selling is a strategy where an investor borrows shares of stock or other asset from a stock broker that is expected to drop in price. Then, after the decline, the investor buys the shares at the lower price and pockets the profit, after expenses. Typically, it’s a strategy for sophisticated investors. […]
U.S. stocks continued to rally in February following the strong gains in January. As corporate earnings reports rolled in throughout the month, they were not nearly as bad as many had predicted. While the U.S. economy does appear to be cooling off, there is no imminent risk of a of recession as many market watchers […]
U.S. stocks jumped sharply in January after hitting a 12-month low on December 24th. Fears of an imminent recession and protracted trade war with China were severely overblown and this pullback in equity markets provided a unique buying opportunity. Corporate earnings reports in January were also not nearly as bad as many had predicted. While […]
By Joshua Franklin, Aparajita Saxena “Slack’s direct listing is an inherently less expensive way of going public, but what it really comes down to is speed,” said Daniel Lugasi, a portfolio manager at Florida-based VL Capital Management. Venture capital firms that have invested in Slack are “looking for an exit and with the rapid growth […]
By Brian O’Connell “Toyota’s in-line earnings announcement on Nov. 6 shows that the company is still very well-positioned in terms of scale and being one of the low-cost producers in the auto industry,” says Daniel Lugasi, a portfolio manager at VL Capital Management in Winter Park, Florida. “The company continues to return cash to shareholders […]
By Barbara Friedberg U.S. stocks are a favorite of Daniel Lugasi, portfolio manager at VL Capital Management in Winter Park, Florida. “For those investing in the U.S., we tend to favor a core and explore strategy. This approach allocates most of one’s assets to large-cap U.S. stock index funds with the remainder going into a […]
By Rebecca Lake Even though the gaming sector made a strong showing in 2018, several gaming stocks are delivering deep discounts for value investors. Daniel Lugasi, founder and portfolio manager at VL Capital Management in Winter Park, Florida, points to EA as a go-to choice. “The stock is currently trading at a forward price-to-earnings ratio […]
By Karl Kaufman Is the stock overvalued? Is there room for growth? Daniel Lugasi: While many investors will focus on the sky-high P/E ratio of Netflix to determine whether the stock is overvalued, the better measure is to look at the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) multiple vs its peers. Netflix […]
By Kayleigh Kulp The assets you buy and metrics you use, such as dispersion, also play into the equation, says Daniel Lugasi, portfolio manager at VL Capital Management in Orlando, Florida. Dispersion refers to the difference between the best and worst performers in an index. When dispersion is high, active managers that pick stocks tend […]
By Emmet Pierce Daniel Lugasi, portfolio manager at VL Capital Management LLC, said internet banks are gaining popularity among people who want to maximize the return on their savings. “The rapid rise of internet banking in recent years has created a real threat for the traditional model of physical branches,” he said. “As more banking […]
By Jeff Brown “If one were to invest in a long-short fund, there are many considerations to take into account,” says Daniel Lugasi, portfolio manager at VL Capital Management. “First, and foremost, it is crucial to examine the firm’s performance track record. A five-year track record for a strategy is the bare minimum that should […]
by Kayleigh Kulp Because of such low prices of some retail stocks, investors should be weary of “value traps,” said Daniel Lugasi, portfolio manager at VL Capital Management. “We believe the most insulated retail companies are those that offer a differentiated service than a company such as Amazon, can provide,” he noted, pointing to TJ […]
While the principles of investing are actually not that complicated, few individual investors have a solid understanding of them. This is largely because investing is not taught as a basic academic subject, which is unfortunate because it leads to poor financial decisions by a large number of people. In this brief overview we will cover […]
By Jeff Brown “With the S&P 500 index trading at a current (price-to-earnings ratio) of around 26 times current earnings, and a historical average being 16 times current earnings, U.S. stocks are trading at elevated valuation levels,” says Daniel Lugasi, portfolio manager at VL Capital Management in Orlando, Florida. “Despite this, we have still been […]
By Kayleigh Kulp Invest in the familiar. Professional asset managers are equipped with specialized knowledge about specific industries – it’s what they do all day. They also use complex algorithms to make their investments in the stock market and ensure they are buying stocks at a good price. Because you don’t do that, “stick with […]
By Jeff Brown “The process of shorting a stock can become very costly and therefore it is prudent to only hold shorts for a minimal amount of time,” says Daniel Lugasi, portfolio manager at VL Capital Management in Orlando, Florida. Risk versus reward for shorting is “extremely unbalanced,” Lugasi says. “The maximum gain on a […]
By Brian O’Connell For financial advisors, smart beta ETFs like RSP make a lot of sense for investors, provided fees are kept in check and the smart beta component used intelligently, says Daniel Lugasi, portfolio manager with VL Capital Management. Lugasi says the burgeoning success of smart beta ETFs “shows the power of systematically exploiting […]
Daniel Lugasi of VL Capital Management says he’s looking out for the next recession but it won’t happen just this year. Watch the Full Video
By Brian O’Connell “The trend toward ETF investing will increase returns for active managers as the spread between the intrinsic value and market value of securities widens. Thus, there will be less active managers seeking abnormal returns, thus more opportunities for those that are consistent stock pickers,” explained Daniel Lugasi, a portfolio manager at VL […]
By Charles Bovaird Unfortunately, online lenders may have a hard time bringing down the default rates that are causing these performance problems, market analyst Daniel Lugasi told Investopedia during an interview. “The only way for online lending platforms to lower default rates is to make credit standards more stringent for applicants,” said Lugasi, portfolio manager […]
Daniel Lugasi of VL Capital Management says the Jose Cuervo IPO is coming at a time of greater uncertainty. Watch the Full Video
Index investing by way of exchange traded funds (ETFs) and mutual funds has grown from a $500 million industry in the 1980s to a $4 trillion industry today. As of late, there has been a significant amount of conjecture about what this means for the future of investing and as a result we would like […]
By Brendan Hilliard Daniel Lugasi, president and founder of VL Capital Management, echoes this saying that trends in recent years have shifted in consumption to high-end tequila varieties while lower quality, mixed tequila shipments have remained flat. Lugasi, whose firm specializes in quantitative equity investing primarily driven by in-house computer systems, says that data from […]