Successful investing generally depends on a modicum of certainty. Consequently, non-binding agreements, often entered into as a politically driven gesture to a particular interest group, can present a dilemma for investors. For example, consider the Paris Agreement, an agreement within the United Nations Framework Convention on Climate Change. Under the agreement, each country must determine, … Continued
It is clear that governments around the world are seriously committed to the electrification of motor vehicles. What is less certain, is the extent of consumer acceptance of electric vehicles (EVs). Currently, EVs account for a small single digit percentage of world-wide light vehicle sales. While most EV manufacturers are able to sell all they … Continued
Doesn’t it seem as though nearly everything has become more politicized and that people are less willing to agree to disagree? Even a casual reading of both The New York Times and The Wall Street Journal, on the same day, could make one wonder if they both live on the same planet. All of this … Continued
According to Wikipedia, smoke and mirrors is a classic technique in magical illusions that makes an entity appear to hover in empty space. The phrase, smoke and mirrors, has entered common English use to refer to any proposal that, when examined closely, proves to be an illusion. Investors should ask themselves, does this describe cryptocurrency? … Continued
Major oil and coal mining companies are selling billions of dollars of assets to bolster their finances, to reduce carbon emissions and to gain favor with ESG (environmental, social and governance) investors. The buyers: typically smaller competitors that are wagering that fossil fuels will remain the world’s main energy source and that underinvestment by larger … Continued
Investing in cryptocurrency has always been controversial. In that regard, we have previously posted several blogs that suggest that legal tender is what the government says it is. Recently, China has made it clear that it does not recognize cryptocurrency as legal tender and the banking system does not accept cryptocurrencies or provide relevant services. … Continued
Yield hunting is a term used in the financial community to identify efforts to preserve a desired yield on fixed income investments that are no longer consistent with changed market conditions. For example, long-time investors may consider 4% as the historical and appropriate yield on the 10-year treasury, when the actual yield, in today’s environment … Continued
As our elected officials keep rolling out trillion dollar spending plans, allegedly to be financed by proposed increases in taxes on corporations and the wealthiest individuals, one might wonder, what happens if revenues fall short? None of the details relating to planned spending and tax increases have been released, and it will probably be several … Continued
Much has been said about an apparent mismatch between unemployment data and the forest of help wanted signs around every corner. While there are a number of possible explanations, many have suggested that overly generous, no questions asked, unemployment benefits may be, at least, part of the problem. While most of the stimulus disbursements have … Continued
Wikipedia defines intellectual property (IP) as a category of property that includes creations of the human intellect. There are many types of IP, and some countries recognize more than others. The most well-known types of IP are copyrights, patents, trademarks and trade secrets. The main purpose of IP law is to encourage the creation of … Continued
Anxiety is a normal human emotion, until it goes to extremes and leads to the potential of irrational behavior. “The only thing we have to fear is fear itself”. This was President Roosevelt’s (FDR) response to the public’s fears during the Great Depression and reflected FDR’s conviction that the U.S. would emerge as a stronger, … Continued
Supply and demand theory postulates that the relationship between supply and demand determines pricing and capacity adjustments. This is true, but more likely to develop over the long term. Supply/demand imbalances can have many causes and it is incumbent on investors to understand the underlying factors. For example, the early 2020 apparent lack of TP … Continued
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