“If You Build It, He Will Come”

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According to Wikiquote, this was ranked as #39 of the 100 most memorable American movie quotations of all time.  In the film, Field of Dreams, an Iowa corn farmer builds a baseball diamond, and storied deceased baseball players emerge from the cornfields to play ball. This concept works well for the movie, but may prove … Continued

Critical Mass

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No, this not about bombs.  It’s about investing in new and developing companies.  Investopedia defines critical mass, in a business context, as the point at which a growing company becomes self-sustaining and no longer needs additional investment to remain economically viable. Over the last several years, a number of rapidly growing companies have entered the … Continued

Beware of Government Subsidies

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Investors would be well advised to be cautious when evaluating investment opportunities based on government efforts to artificially, and often temporarily, affect consumer behavior. Consider the causes and implications of falling electric vehicles (EV) sales in China, the world’s largest market, accounting for approximately 60% of global output last year. China has been reducing subsidies … Continued

Take the Current Rally with a Grain of Salt

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As I pen this article, major US stock indices are hitting all-time highs.  As a result, many investors are peering at their statements or live-streaming devices and are giddy that their net worth continues to climb. When times are good, it is human nature to remember these high water marks and use these elevated market … Continued

Dow 30,000

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Peter Navarro, Assistant to the President, and Director of Trade and Manufacturing Policy, recently suggested that the Dow Jones Industrial Average could reach 30,000 in 2020. While there is nothing wrong with what is essentially a short prediction, investors should continue to work with their advisor(s) and stay focused on the long term.  Markets are … Continued

Compound Interest

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Albert Einstein is reputed to have described compound interest as “the most powerful force in the universe” and “the greatest invention in human history.”  Whether he did or didn’t use these phrases, capitalizing on the positive attributes of compound interest is a very important part of any wealth-building strategy. Investopedia defines compound interest as interest … Continued

Carbon Taxes

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Regardless of how you may feel about climate change, it is probably useful to understand the issue of carbon taxes. According to Wikipedia, a carbon tax is a tax levied on the carbon content of fuels and, like carbon emissions trading, is a form of carbon pricing.  The term “carbon tax” is also used to … Continued

Corroboration

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Corroboration is generally defined as evidence which confirms or supports a statement, theory or finding. We now live in a world where almost anyone, can say almost anything, about anything or anyone, often on social media. Investors should be careful to assess commentary and seek corroborating information that might affect an existing or potential investment. … Continued

The World is Growing More Dangerous?

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Francois Delattre, France’s ambassador to the United Nations, as he prepared to return to France, expressed the thought that the world is growing more dangerous.  His concerns are based on the perception that three main safety mechanisms no longer function. No more American power willing to be the last-resort enforcer of international order. No solid … Continued

Regulation and Simplification

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We have previously commented on the importance of regulations that are clear, concise and broadly acceptable (see our blog posted 14 Sep 2016). A new Securities and Exchange Commission (SEC) rule requires brokers and financial advisors to describe their services, fees and conflicts of interest in “plain English” in a maximum of four pages. This … Continued

Less Convenient, More Expensive

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How about that for an advertising slogan as the world’s automobile manufacturer’s roll out a broad range of electric vehicles (EV)? Potential EV buyers have to face two clear issues. Battery charging time and charging station availability are problems that owners of gasoline powered vehicles do not have to deal with. It is generally accepted … Continued

Cryptocurrency

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Wikipedia defines cryptocurrency as a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.  Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. The decentralized control of each cryptocurrency … Continued