Archive

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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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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Deficit Spending

It is now clear that congressional budget compromises are an excuse to spend more on everyone’s wish list rather than to make hard decisions regarding appropriate priorities. Running up the deficit is not a recent phenomenon.  Adding to the national debt has been the reality of both political parties for a long time, as no […]

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Everybody Has a Plan…

The full quotation, attributed to Mike Tyson is, “everybody has a plan until they get punched in the mouth.”  While Mr. Tyson was obviously talking about boxing, the same concept is probably equally relevant to investing.  A sudden and sharp correction in the stock market, can feel like kick in the stomach. Most investors start […]

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