Efficient Markets and Norovirus

In finance, the efficient market hypothesis asserts that financial markets are “informationally efficient” and reflect the available information. Sometimes it is difficult to completely discern what the markets actually know. Consider the cruise industry and Norovirus. Norovirus is a very contagious virus, it is the most common cause of acute gastroenteritis in the U. S. … Continued

Choosing Not To Work

There has been a debate of long standing between recognized economists as to whether unemployment benefits and other programs are an essential safety net or an incentive to “choose” not to work. While this remains complicated and controversial, a recent report from the CBO, Congress’s official score keeper, suggests that Obamacare will cause approximately 2.5 … Continued

Wages and Sandwiches

There has recently been a heightened interest in the appropriate level for the minimum wage and whether it should be increased. Clearly, this is a highly political discussion, with strong views on both sides. That is probably healthy, but investors should set aside their opinions and direct their attention to the possible affect on their … Continued

”Ya Gotta’ Have Art”

A recent article in The Wall Street Journal reported that a number of hedge fund managers have been investing in the art market, often seeking newer or out of favor artists with a view to the traditional trading approach of “buy low, sell high”. This is not surprising, as hedge fund managers have a long … Continued

Auto Show Conundrum

The North American International Auto Show is currently in Detroit and a quick look suggests that the major theme is “bigger and faster”. The car of the year is the Chevrolet Corvette Stingray, a street legal rocket, and the truck of the year is Chevrolet’s Silverado, a 5,000 lb. behemoth. The industry has made great … Continued

Can’t Save Money? Think Again

Can’t is not a synonym for “won’t”. A recent article in U.S. News & World Report by Robert Berger made some interesting points with the provocative headline “Would You Give Up Cable to Retire Early?”. http://tinyurl.com/nw9s987 The key point in his article was based on the effect of compound interest. He postulated that the average … Continued

Thank you, Captain Lehnert

Today, my son-in-law, Captain Jeffrey Lehnert, USAF, marks his final day in uniform in service to the people of the United States of America. During his seven years in the US Air Force, he served in the United States, Europe and Iraq. I am proud of him and wish to both congratulate, and thank him, … Continued

The Army, Islamists or War Lords

These seem to be the choices for many citizens in the Middle East. Over the last few years the world has seen numerous instances of bullets trumping ballots, leaving a trail of human misery. Investors are not well positioned to address these issues. However, while hoping for the best, investing, particularly by fiduciaries, requires an … Continued