• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Mullooly Asset Management

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Our Fees
  • About us
  • Schedule a Meeting

Lehman Brothers, Seven years later

September 17, 2015 by Thomas Mullooly

https://media.blubrry.com/invest/p/content.blubrry.com/invest/2015_09_16_podcast.mp3

Subscribe: RSS

This week, we mark the seven-year anniversary of the fall of Lehman Brothers back in 2008.  In the podcast, we quickly review how Bear Stearns and Lehman both collapsed from 2007 to 2008.  We also remarked how leaders at several banks, brokerage firms, and other financial companies noted their organizations had little-to-no exposure to sub-prime mortgages.  But yet, as the contagion spread, these same organizations began taking large reserves for losses discovered in their operations.

The point of rehashing all this is to point out fundamental analysis should not be written in stone — things change, all the time.  While many of the financial companies may indeed had little to no exposure in sub-prime mortgages, the virus spread to many other types of investments on the books.

Earnings per share — for so many companies — are very hard to predict and even harder to project.  And ultimately the earnings of many of these financial companies vanished in 2008.  And in some cases, the companies themselves vanished and are no longer around.

This WHY we include the use of point and figure charting in our work.
The excellent work of our friends at Dorsey Wright and Associates, reinforces over and over that price IS the ultimate indicator.  Price — what someone is willing to buy or sell an asset is an accurate indicator of the value.  With that in mind, it does not matter if the company earnings are good or bad, if the economy is good or bad, if the company itself is good or bad, or even if folks are trading with inside information — ALL of that is reflected in the price.

The beauty of point and figure charting is they cut through all the noise.  The lesson we take away when we see collapses in stocks (like Lehman Brothers) is the patterns and price action we see on the charts give us real-time indications.  Many investors who rely strictly on fundamental analysis sometimes get surprised when companies adjust earnings (earnings in the future and, sometimes, earnings in the past).  We’ll continue to fold technical analysis (like point and figure charting) into our work here at Mullooly Asset Management.

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Podcasts, Stock Market Comments

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.

Footer

2052 NJ-35, Suite #203
Wall Township, NJ 07719
Phone: (732) 223-9000
Fax: (732) 223-9600
Email: support@mullooly.net

  • Privacy Policy
  • Disclosures and Legal Disclaimers

Useful Links

  • Contact Us
  • Client Login
  • Pay Bill Online
  • About us
  • Our Fees
Text Example

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Resource Center

  • Videos
  • Podcasts
  • Blog

Copyright © 2021 · Design by :- Eliza Jack