According to Wikipedia, “freedom of the seas” is a principle in international law and law of the sea. It stresses freedom to navigate the oceans. Like any law, enforcement is sometimes required. Historically, during a period of relative peace (1815-1914), often referred to as “Pax Britannica”, the Royal Navy was, in effect, the guarantor of … Continued
Our Chief Investment Officer, Denise Farkas, and I were at the Chartered Financial Analyst (CFA) Institute’s Annual Conference earlier this week. We thought that it would be a good idea to share some insight with our readers on trends and changes in the global oil market. First, the global oil market is experiencing a structural … Continued
Over the last several months there have been a considerable number of demonstrations aimed at increasing wages for low income employees, particularly in the fast food industry. The prevailing demand is an improvement to $15 per hour from the current federal minimum wage of $7.25 per hour. In the meantime, various other jurisdictions, including states … Continued
In the case of electric vehicles (EVs), it depends. Governments have become increasingly aggressive in encouraging the purchase of EVs, with subsidies, both at the manufacturing and consumer level, and through fuel economy mandates. But is this really a good idea and will it reduce emissions? Bernstein Research, which studied the car market in Hong … Continued
The financial transaction known as an “inversion” is designed to take advantage of lower corporate tax rates outside the United States. While the practice has been subject to an increasing level of political criticism, there does not appear to be any credible evidence that it is a violation of current tax law. Despite the political rhetoric, … Continued
It is fairly well established that no one has been able to consistently pick market tops and bottoms. Of course, that is not stopping people from trying. One anecdotal clue, that has some currency in the investment community, is the concept of cyclical companies announcing headquarters upgrades and expansions at or near the top of … Continued
This is a country music song written by David Allan Coe and popularized by Johnny Paycheck. Perhaps you should be careful what you ask for. Between the increasing use of automation and rising minimum wages, the potential for reduced employment opportunities may make it increasingly important to hang on to the job you have. There … Continued
Argentina is a serial defaulter. Argentina’s most recent default, more than $80 billion, began in 2001, and was only recently fully resolved after various classes of debt holders accepted significant losses. In April 2016 Argentina sold $16.5 billion of new dollar denominated debt ranging from three to 30 years, with a yield of 8% on … Continued
Over the past few years, clients have asked on occasion about the merit of including hedge fund investments in portfolios. At its extreme, I sat in the living room of a very wealthy client in North Carolina in 2007 and was politely dressed-down by a money center bank product salesman for not being bright enough … Continued
Money not only talks, but it sings and dances. Therefore, when the Federal Reserve Bank talk’s people not only listen, but they analyze, strategize, speculate, and more. The Fed’s power has significant influence over global financial markets and the world, making their words and actions of the utmost importance to us all. Given the recent … Continued
Investing in industries that enjoy significant subsidies may carry additional risks. Subsidies, typically granted by government to support desired public policy, can also be revoked or materially altered. For example, home solar panel systems have seen considerable growth, particularly in states that have mandated large payouts to residents who generate more renewable energy than they … Continued
A recent article in The Wall Street Journal indicated that banks have become more aggressive in pursuing home equity loans. According to new data from mortgage data firm CoreLogic Inc, lenders extended just over $156 billion in home equity lines of credit in 2015, the largest dollar amount since 2007, the beginning of the housing … Continued
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