Beggar Thy Neighbor

According to Wikipedia, a beggar-thy-neighbor policy is an economic policy through which one country attempts to remedy its economic problems by means that tend to worsen the economic problems of other countries. The term, beggar-thy-neighbor, was originally devised to characterize policies of trying to cure domestic depression and unemployment by shifting demand away from imports … Continued

Talking Your Book

According to InvestorWords.com, talking your book is an investing expression which means arguing for a scenario that, if true, would end up making you money because it follows your investing strategy. In other words, when investment professionals publicly express their views regarding an investment opportunity, in which they hold a position, they are “talking their … Continued

Ethanol

Ethanol is a renewable, domestically produced alcohol fuel made from plant material, such as corn, sugar cane, or grasses.  In the U.S., corn is the primary source of ethanol, while other countries, particularly Brazil, use sugar cane. Using ethanol can reduce oil dependence and greenhouse gas emissions.  Ethanol use in the U.S. has increased dramatically … Continued

Understanding Fear Based Media

Investors should recognize that news is intended to be a money making industry.  Instead of simply reporting the news in a straight forward manner, most media reporting has morphed into editorials, with an emphasis on the spectacular, the stirring, and the controversial.  The emphasis is no longer on getting the facts right, but rather, a race … Continued

Dynamic Versus Static Scoring

According to Wikipedia, dynamic scoring is a forecasting technique for government revenues, expenditures, and budget deficits that incorporates predictions about the behavior of people and organizations based on changes in fiscal policy.  A dynamic scoring model may include expectations as the population adapts to the new policy.  Alternatively, static scoring makes simpler assumptions regarding behavior … Continued

Corporate Governance Does Matter

The importance of corporate governance and shareholder rights has recently made headlines with the implosion of the proposed initial public offering (IPO) of WeWork.  We discussed this issue in our blog, “Corporate Governance/Shareholder Rights,” posted 15 Mar 2017. It is evident that investors have now become somewhat more discriminating in evaluating potential IPOs.  While governance … Continued

“You Need to Calm Down”

“You Need to Calm Down” is the title of a recently released song by singer-songwriter Taylor Swift.  While this is probably good advice for all of us, it is particularly appropriate for investors.  With a constant drum beat of conflicting investing and political commentary, markets tend to be subject to frequent, short-term, and often ill-advised, … Continued

Buyer’s Remorse and Brexit?

With the October 31 deadline for a Brexit withdrawal rapidly approaching, it is increasingly clear that there is no political consensus for the terms under which the United Kingdom would exit from the European Union.  It has been suggested that, while 52% of British citizens voted in favor of Brexit in June 2016, increasing awareness … Continued

“Flygskam”

“Flygskam” is Swedish for “flight shame,” a rising headwind for the airline industry that is particularly strong in Sweden and Scandinavia.  Climate studies show that airlines are a major factor in the increase in greenhouse gases.  A European Commission study noted that someone flying from Europe to New York, and back, generates roughly the same … Continued

Electric Vehicles (EV) are Coming; Ready or Not

The global auto industry is scrambling to meet carbon-emission mandates and, currently, EVs appear to be the solution of choice.  Unfortunately, advances in battery technology and cost are not cooperating.  Cutting the cost of batteries is probably the industry’s most urgent challenge.  Batteries are estimated to account for 35%-45% of EV total costs.  Unless EV … Continued

Understanding Brexit; Reprise

In light of British Prime Minister Boris Johnson’s move to suspend Parliament for several weeks, it might be helpful for investors to review our blog of 30 Apr 2019; Understanding Brexit. Understanding Brexit In Great Britain you can bet on almost anything through authorized bookmakers.  Currently, the odds on Brexit happening are now, for the … Continued

Beta Testing

Beta testing is generally defined as external pilot-testing of a product before commercial quantity production.  At the beta test stage, the product has already passed through first-level, internal pilot-testing (alpha testing) and glaring defects have been addressed.  Beta testing puts a new product through “real world” testing by selected customers under normal, everyday conditions. Investors … Continued