Archive

Picking the Top

It is fairly well established that no one has been able to consistently pick market tops and bottoms.  Of course, that is not stopping people from trying.  One anecdotal clue, that has some currency in the investment community, is the concept of cyclical companies announcing headquarters upgrades and expansions at or near the top of […]

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“Take This Job and Shove It”

This is a country music song written by David Allan Coe and popularized by Johnny Paycheck.  Perhaps you should be careful what you ask for. Between the increasing use of automation and rising minimum wages, the potential for reduced employment opportunities may make it increasingly important to hang on to the job you have. There […]

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Yield Hunting

Argentina is a serial defaulter. Argentina’s most recent default, more than $80 billion, began in 2001, and was only recently fully resolved after various classes of debt holders accepted significant losses. In April 2016 Argentina sold $16.5 billion of new dollar denominated debt ranging from three to 30 years, with a yield of 8% on […]

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The Hedge Fund Exodus Continues

Over the past few years, clients have asked on occasion about the merit of including hedge fund investments in portfolios.  At its extreme, I sat in the living room of a very wealthy client in North Carolina in 2007 and was politely dressed-down by a money center bank product salesman for not being bright enough […]

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She Who Controls the Money Supply of a Nation…

Money not only talks, but it sings and dances.  Therefore, when the Federal Reserve Bank talk’s people not only listen, but they analyze, strategize, speculate, and more.  The Fed’s power has significant influence over global financial markets and the world, making their words and actions of the utmost importance to us all. Given the recent […]

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Subsidies and Risk

Investing in industries that enjoy significant subsidies may carry additional risks.  Subsidies, typically granted by government to support desired public policy, can also be revoked or materially altered. For example, home solar panel systems have seen considerable growth, particularly in states that have mandated large payouts to residents who generate more renewable energy than they […]

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