Archive

Labor-Force Participation, Revisited

We have previously discussed the importance of labor-force participation (see blog from 09 Jan 2018).  The recently reported February jobs report was probably about as good as it gets. Nonfarm payrolls grew by 313,000, the unemployment rate held steady at 4.1%, wages grew by a too modest 0.1% and, most important, the labor-force participation rate […]

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Uncertainty

Uncertainty describes a situation without a straight forward description involving ambiguous and/or unknown information. Markets don’t like uncertainty. Markets tend to over react in the near term, as traders attempt to get ahead of any suggestion of a possible change in sentiment. Recently, markets reacted sharply to an announcement relating to the possibility of new […]

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A Win for Investors

Several months ago Facebook announced a plan to create a new, third class of nonvoting shares, designed to further strengthen Mark Zuckerberg’s voting control.  According to the latest proxy information, he already holds approximately 60% of the voting power in a two class stock structure. A trial for a class action law suit, seeking to […]

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Dow One Million?

Warren Buffett, speaking at an event to mark the 100th anniversary of Forbes magazine, suggested that the Dow Jones Industrial Average (DJIA) would be “over 1 million” in 100 years. One million may look like a big number, and it is, but it only assumes a compound average annual return of approximately 4%.  Considering that […]

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Tulips and Bitcoins

Paul Vigna, in a recent Wall Street Journal article, pointed out that “digital currency fans are partying like its 1999.” Perhaps Mr. Vigna may want to look further back than 1999, to 1637.  That is when, according to Wikipedia, during a period in the Dutch Golden Age, the contract prices for a single tulip bulb […]

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Dual Classes of Stock May Not Be in the Best Interest of Shareholders

Ford Motor Company recently fired its CEO, Mark Fields.  Its decision to do so was based on the stock’s poor price performance and belief that the company was not agile enough in addressing structural changes occurring in the auto industry.  Personally, I have no opinion as to whether Mark Fields was the source of the […]

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