INSIGHTS
Thoughts, insights and opinions from our team of investment experts.
Latest

Randall Abramson, CFA Newsletter Excerpts
Most believe we are destined for a recession, if not already in one. Between the negative sentiment and the stock price valuation reset that needed to take place, it’s not surprising that the markets have meaningfully softened. While the economy is clearly slowing, we do not foresee an imminent recession.
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Investment Process
Expecting High Expectations to Fall
RJ Steinhoff, CFA Investment Process
Meme-stocks such as AMC and GameStop have been cut in half from their summer-highs. Much-hyped technology stocks like Palantir, Zoom, and Peloton are down significantly. Even still, large-cap U.S. equities remain expensive with embedded growth expectations too high. As a result, navigating the markets recently has required extra patience and discipline. We sleep better knowing that we are partially hedged in case today’s elevated expectations are quickly tempered and normalized valuations again prevail.
Embracing Sustainable Investing
RJ Steinhoff, CFA Investment Process
In 2020, we created a more robust ESG framework that codified many of our long-held beliefs.
We have not found any satisfactory evidence to conclude that investing in a multi-dimensional ESG process is additive to returns over the long run. While returns may not be elevated, we believe returns per unit of risk can be enhanced by incorporating sustainability factors.
Economy
No Signs of Recession–Yet
The economic picture has blurred recently. Despite a murky outlook, our U.S. TECTM monitor has yet to signal the end of the current economic cycle.
Yield Curve Catching Up
The steepening curve and shift from technology and momentum stocks to financials and cyclicals should offer increased confidence in the economic outlook. Put simply, the yield curve is playing catch up to the mounting evidence that the recovery is on more solid footing.
Personal Finance & Wealth Management
- Economy
- Expert Series
- Investment Process
- Newsletter Excerpts
- Personal Finance & Wealth Management
- Randall Abramson, CFA

Michelle Tatham, CIM, CFP Personal Finance & Wealth Management
In some parts of the country they’re referred to as cottages. Others call them cabins or chalets. No matter the label, owners of recreational properties have been feeling especially fortunate recently to have another place for a change of scenery. Families should contemplate the eventual tax implications of selling a cottage or passing it on to the next generation.

Michelle Tatham, CIM, CFP Personal Finance & Wealth Management Michelle Tatham
Many advisors are polarized in their belief of which registered account is best, often because of a bias or assumptions made without proper planning. The truth is, both have unique advantages and disadvantages and both should be fully utilized where possible.
Meet the Expert Series

RJ Steinhoff, CFA Expert Series
Integrated into all of our growth and income strategies, the principal goal of our risk management system is to mitigate the market corrections that generally follow business cycle peaks, periods of market euphoria, or events such as the 2010 European debt crisis.
Newsletter Excerpts
What Does a Yellow Light Mean?
Randall Abramson, CFA Newsletter Excerpts
Most believe we are destined for a recession, if not already in one. Between the negative sentiment and the stock price valuation reset that needed to take place, it’s not surprising that the markets have meaningfully softened. While the economy is clearly slowing, we do not foresee an imminent recession.
Blueberries, Blowups and Babies
Randall Abramson, CFA Newsletter Excerpts
Our recent mantra has been “Sell the rallies” not “Buy the dips” because we’ve been expecting much more than a dip. That’s not to say that we’ve been expecting a recessionary-based bear market—prolonged and pronounced negative returns while underlying values are falling. We’ve been anticipating a correction, albeit maybe a substantial one, since prices started falling from levels that were above our estimate of fair market value (FMV).
Right Place Wrong Time
Randall Abramson, CFA Newsletter Excerpts
We sleep well at night knowing that we are partially hedged and that our holdings are growing, high-quality companies that, unlike the overall market, trade at substantial discounts to our estimates of FMV. We remain concerned about several factors, primarily high market valuations, which could trigger a market decline and reestablish a wall of worry.
What a Weird World
Randall Abramson, CFA Newsletter Excerpts
On rare occasions the market takes on a speculative bent as animal spirits run amok. For us value investors, during these periods, it’s always hard to believe that the others, whose behaviour is so odd to us, are competing in the same field. Why would anyone ignore fundamentals, buy purely on price, chase what’s already gone way up, use highly-speculative instruments, assume extreme leverage, or worst of all, purchase something that’s hugely popular—gone viral—a ‘meme’ stock?
Zooming to Booming
Randall Abramson, CFA Newsletter Excerpts
The economy, now booming thanks to massive government stimulus and zero interest rates, should accelerate further in the near term as pent-up demand is unleashed. There are notable concerns which could cause the markets to ebb—especially since stocks in general are priced for perfection.
Spectate or Speculate
Randall Abramson, CFA Newsletter Excerpts
Investors should not take either of these extreme stances. Without a crystal ball, it’s extraordinarily difficult to time tops or bottoms. Speculation is accompanied by too much risk— outsized declines can arrive at any time. Sitting in cash and waiting for a better entry point can have the opposite effect as business valuations generally ascend with the march of time—so most returns are made from being fully invested to benefit from the lift in underlying security values.
The New Abnormal
Randall Abramson, CFA Newsletter Excerpts
While markets could continue their ascent, we believe that extended valuations and exuberance should at least temporarily cap market indexes. We remain defensive, holding some cash and/or a reasonable sized hedge, while we continue to hunt for undervalued high-quality businesses, both here and abroad, especially since overseas investment options are cheaper than comparable U.S. shares.
“DEFENCE DEFENCE”
Randall Abramson, CFA Newsletter Excerpts
While we haven’t been chanting at the office, we have taken a defensive stance toward the markets. While the overall markets and many of our peers now appear to be all about offence, we are concerned that the recent overzealousness has stretched valuations too far. The markets are above our estimate of Fair Market Value (FMV) at a time when the economy may struggle to fully revive.
A Little Too Interesting
Randall Abramson, CFA Newsletter Excerpts
The meaning of ‘may you live in interesting times’ is controversial. Some argue it originated as a Chinese curse. We embrace that assertion because we’ve always responded to, “interesting times, huh?” with, “a little too interesting!” Turbulence, tension, and a feverish pace should be relegated to roller coasters, entertainment or, perhaps, between the sheets. But for the status of the world around us, we root for the mundane. We’ve just endured anything but.
Our Recipe
Randall Abramson, CFA Newsletter Excerpts
Recipes have been likened to culinary road maps. At Generation, we have our own defined processes, including specifically designed tools such as TECTM, TRIMTM, TRACTM and TVMTM, to guide us. And like recipes that get handed down from generation to generation, we’d like nothing better than to pass along our processes to future generations—both ours and yours.
Generation PMCA In the News
Zooming to Booming
The New Abnormal
Whitney Tilson Highlights Generation PMCA's Analysis of Apple
INSIGHTS
Thoughts, insights and opinions from our team of investment experts.
Latest

Randall Abramson, CFA Newsletter Excerpts
Most believe we are destined for a recession, if not already in one. Between the negative sentiment and the stock price valuation reset that needed to take place, it’s not surprising that the markets have meaningfully softened. While the economy is clearly slowing, we do not foresee an imminent recession.
Subscribe
Receive Insights from our team of investment experts directly to your inbox.
No Signs of Recession–Yet
The economic picture has blurred recently. Despite a murky outlook, our U.S. TECTM monitor has yet to signal the end of the current economic cycle.
Blueberries, Blowups and Babies
Randall Abramson, CFA Newsletter Excerpts
Our recent mantra has been “Sell the rallies” not “Buy the dips” because we’ve been expecting much more than a dip. That’s not to say that we’ve been expecting a recessionary-based bear market—prolonged and pronounced negative returns while underlying values are falling. We’ve been anticipating a correction, albeit maybe a substantial one, since prices started falling from levels that were above our estimate of fair market value (FMV).
Expecting High Expectations to Fall
RJ Steinhoff, CFA Investment Process
Meme-stocks such as AMC and GameStop have been cut in half from their summer-highs. Much-hyped technology stocks like Palantir, Zoom, and Peloton are down significantly. Even still, large-cap U.S. equities remain expensive with embedded growth expectations too high. As a result, navigating the markets recently has required extra patience and discipline. We sleep better knowing that we are partially hedged in case today’s elevated expectations are quickly tempered and normalized valuations again prevail.
Right Place Wrong Time
Randall Abramson, CFA Newsletter Excerpts
We sleep well at night knowing that we are partially hedged and that our holdings are growing, high-quality companies that, unlike the overall market, trade at substantial discounts to our estimates of FMV. We remain concerned about several factors, primarily high market valuations, which could trigger a market decline and reestablish a wall of worry.
Embracing Sustainable Investing
RJ Steinhoff, CFA Investment Process
In 2020, we created a more robust ESG framework that codified many of our long-held beliefs.
We have not found any satisfactory evidence to conclude that investing in a multi-dimensional ESG process is additive to returns over the long run. While returns may not be elevated, we believe returns per unit of risk can be enhanced by incorporating sustainability factors.
What a Weird World
Randall Abramson, CFA Newsletter Excerpts
On rare occasions the market takes on a speculative bent as animal spirits run amok. For us value investors, during these periods, it’s always hard to believe that the others, whose behaviour is so odd to us, are competing in the same field. Why would anyone ignore fundamentals, buy purely on price, chase what’s already gone way up, use highly-speculative instruments, assume extreme leverage, or worst of all, purchase something that’s hugely popular—gone viral—a ‘meme’ stock?
Amateur Year
RJ Steinhoff, CFA Investment Process
Forget amateur hour–the post-pandemic boon that has now lasted just more than twelve months has been defined by amateurs. Buoyed by their gains, some of these amateurs have become self-styled market prophets. Others revel in their losses in places like Reddit’s infamous WallStreetBets subreddit.
Zooming to Booming
Randall Abramson, CFA Newsletter Excerpts
The economy, now booming thanks to massive government stimulus and zero interest rates, should accelerate further in the near term as pent-up demand is unleashed. There are notable concerns which could cause the markets to ebb—especially since stocks in general are priced for perfection.
ViacomSeeBS
RJ Steinhoff, CFA Investment Process
The rise and fall of ViacomCBS has been more fascinating to watch than most of their TV shows. ViacomCBS’ wild ride ended like many past examples of extreme speculation. Starting with a real story—the successful rollout of its various streaming platforms, accelerated by the COVID-19 global lockdown—with greed and reckless speculation taking over to catapult its price well beyond fair value. The final act, of course, was the implosion.
Yield Curve Catching Up
The steepening curve and shift from technology and momentum stocks to financials and cyclicals should offer increased confidence in the economic outlook. Put simply, the yield curve is playing catch up to the mounting evidence that the recovery is on more solid footing.