Archive

Diversification

Investors typically think of diversification in terms of fixed income versus equity and a suitable range of specific investments in each asset class.  However, employees of companies with publicly traded shares and robust pension and retirement programs, may not be fully recognizing the additional risks involved. A recent article in The Wall Street Journal, discussing […]

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Death Spiral Financing

Wikipedia defines death spiral financing as a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall. While generalization is fraught with risk, typically companies require multiple financings to […]

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Why is Pay Lagging?

With the unemployment rate at approximately 4%, the lowest since 2000, economists have been surprised by the slow growth in paychecks.  Historically, when that few people are unemployed, companies have had to pay up to attract workers. Clearly, anecdotal evidence and government reports suggest that the U.S. is in a tight job market, yet pay […]

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The EV Dichotomy

Following a recent visit to India, I came away with several pertinent climate and energy observations. Traffic in major cities, such as Delhi and Mumbai, is very difficult. Air quality is bad.  In the morning, visibility from my hotel room window was generally less than one mile.  While some improvement developed during the day, the […]

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Doing Nothing

During periods of above average market volatility, or sharp moves in either direction, investors and advisors are likely to wonder if some action might be appropriate or expected.  This natural reaction may be exacerbated by an endless stream of punditry and suggested strategies from CNBC and other media outlets. In most cases, the most appropriate […]

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Misdirection

According to Wikipedia, misdirection is a form of deception in which the attention of an audience is focused on one thing in order to distract its attention from another.  While misdirection has generally been associated with magicians, CEOs have not been immune to the opportunity. Investors should be careful in reacting to corporate announcements that […]

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