Archive

Cash is King?

The concept of “cash is king” has often been associated with investment strategies.  It now appears that the importance of cash as an incentive is becoming a larger factor in attracting business investment. For example, at first glance, it would seem that Wisconsin’s successful bid for Foxconn’s first major U.S. manufacturing facility was smaller than […]

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“Que Sera, Sera”

“Que Sera, Sera” is the title of a song made famous by Doris Day in 1956.  Investors might note the song’s chorus.  “Que sera, sera, whatever will be will be, the future’s not ours to see, que sera, sera, what will be, will be.” Despite the seemingly never ending prognostications, by “experts”, both bulls and bears, […]

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Do Costs Determine Prices?

Conventional wisdom generally suggests that when costs rise, price increases follow.  Most of the time, this may be accurate.  However, investors should investigate carefully before jumping to a conclusion.  Sometimes costs adjust to reflect prices rather than the other way around. An interesting case in point is the oil industry’s reaction to a major decrease […]

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Are Real Wages Finally Firming?

We have previously commented on the issue of lackluster U.S. economic growth.  (See our blog from  Jul-12)  Among the possible causative factors, relatively modest gains for real wages has been highlighted by many economists. We have seen unemployment steadily decline to near record lows.  At the same time, we have not seen much in the […]

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Infrastructure

Infrastructure is defined by the “American Heritage Dictionary” as the basic facilities, services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, post office, and prisons. Historically, politicians have tended to give infrastructure spending short shrift while favoring social […]

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Accounting for Retiree Benefits

It is probable that states and cities will soon be recording the full cost of health care promised to public employees once they retire.  New Government Accounting Standards Board principles urge officials to record all health care liabilities on their balance sheets instead of pushing a portion of the debt to foot notes.  Most states […]

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