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Scarcity Versus Shortage

Scarcity and shortage are not synonyms.  Scarcity is the simple concept that, while some resources may be limited, supply equals demand.  Shortage, on the other hand, occurs when markets are out of equilibrium and demand exceeds supply. Investors should understand the differences between scarcity and shortages before making a portfolio decision.  Just because a product […]

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Work-to-Rule

Wikipedia defines work-to-rule as an industrial action in which employees do no more than the minimum required by the rules of their contract, and precisely follow all safety or other regulations, which may cause a slowdown and/ or a decrease in productivity.  Such action is considered to be less disruptive than a strike or lockout, […]

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Elections Have Consequences

Now that we are in the midst of the normal turmoil leading to the quadrennial presidential elections, it is important to remember that elections do have consequences and that we should all take the time to understand the issues before casting our ballots. Investors should also be diligent in reviewing and voting proxies.  For the […]

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Is Labor-Force Participation Improving?

We have previously discussed the importance of labor-force participation (see blogs from 09 Jan 2018 , 16 Mar 2018 and 18 May 2018 ). Recent data suggests that the labor-force participation rate has started to improve, probably thanks to a strong economy and significant increases in the de facto minimum wage, to approximately $15 per […]

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Shareholder Voting Rights

Ride sharing startup Lyft’s move to the public market, has rekindled the issue of shareholder voting rights.  Lyft’s plan for dual-class voting shares has caught the attention of pension funds, which suggests that investors should be aware that corporate governance is not a one-man one-vote democracy. Lyft co-founders will receive 20 votes per share while […]

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The Opportunities Presented by a Volatile Market

For investors, market volatility can be a painful thing, particularly on the down days.  No one likes to see the value of their portfolio go down, but every downturn comes with potential opportunities.  However, as emotions can run high, along with volatility, it is important to maintain portfolio discipline, staying with your long-term game plan, […]

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