Beijing is Pursuing the Solomon Islands

Over the last several years we have posted a number of blogs, most recently on September 22, 2021, “Sea Power”, relating to the importance of freedom of the seas, particularly with regard to the risks surrounding the critical Malacca Strait and the increasing adventurism of China in the South China Sea.  Apparently the Chinese have … Continued

Fake It ‘till You Can Make It

Investors are continuously subject to extravagant projections by those who are seeking to attract financing.  These can range between borderline, or even outright fraud, think Theranos, or relatively minor, and often unintentional estimate shortfalls, such as a slippage of time lines.  Think the ever shifting timeline for the start of production for Tesla’s cyber truck … Continued

Retirement and the Labor Shortage

It is generally accepted that, over the last two years, a significant number of Americans have left the workforce for a wide variety of reasons. As a result, workforce participation has seen a material decline. Among those who have left, it appears that a number chose early retirement, perhaps over health concerns or because a … Continued

Pricing Power and Inflation

Investors typically seek to build portfolios that focus on companies with pricing power.  Without that, as costs increase, margins can be squeezed.  Currently, we seem to be in a period of rising costs, particularly for labor and certain commodities.  Companies are likely to look first to productivity gains and raw material substitution, but, sooner or … Continued


Wikipedia defines cynicism as an attitude characterized by a general distrust of other’s motives.  Investors would be well served by maintaining a healthy level of skepticism regarding other’s motives when evaluating projections and other factors surrounding an investment decision.  Think Theranos. Consider the recurring attacks on the safety of cruising.  Now the CDC says don’t … Continued

Natural Gas and Inflation

Natural gas is an important raw material in a wide range of economic activities, including heating, electric power generation, plastics, manufacturing processes and agriculture.  For example, fertilizer prices, responding to significant cost increases for key chemical ingredients such as natural gas, have more than doubled over the last year.  This can have a two pronged … Continued

Shooting Yourself in the Foot

This idiom is often associated with damaging or impeding one’s own plans, progress, actions or best interests through foolish actions or words.  Germany may be exhibit A.  It would seem that a major developed country facing a generational energy crunch would be trying everything possible to expand supply while doing as little environmental damage as … Continued