If it looks like a bull, snorts and paws like a bull, and charges like a bull, it is a bull. And this is a bull market.
Absolutely, no doubt about it. It is one of the great bull runs in history—already 5 ¼ years old. On March 6, 2009, the S&P 500 was 676.53; on May 31, 2014, it was 1923.57. Total price appreciation: +284%. Compounded annual price appreciation: +22%!
We at UNIO believe that what is driving M&A activity is not so much confidence in the future as much as concern that revenue and profit growth will be harder to come by.
Revenue growth will struggle precisely because the economic landscape will be slow. Profit growth will be grinding because—at 50-year highs in profit margins—it will take every ounce of extra revenue to bring extra growth to the bottom line. We think CEOs and boards sense this problem lies ahead.
Either Warren Buffett is the great investment magician who has been breaking all his own rules left and right. Or he is something else. I think he is something else. I think Buffett is the ultimate broadband investor.