Week of August 4, 2025 President Trump’s response to Russia’s saber-rattling in Ukraine (nuclear threat?), along with recent U.S. strikes in Iran, reflects a pattern of assertive action aimed at reducing global conflict. While controversial, this approach appears intended to deter aggression and stabilize international relations. From a financial markets perspective, if these efforts succeed … Continued

With the recent resurgence of so-called meme stocks, it might be a good time to understand the underlying premise supporting interest in these stocks.  Specifically, it is the Bigger Fool Theory, which is based on the idea that a bigger fool than me will take these shares off my hands at a higher price than … Continued

Week of July 28, 2025 As equity markets rose to new highs over the past couple of weeks, there was a general concern that earnings might not live up to the lofty expectations that the soaring stock prices were suggesting. To date, earnings have generally been in excess of expectations and may, in fact, justify … Continued

Week of July 21, 2025 Despite President Trump’s public pressure on Federal Reserve Chairman Jerome Powell to lower interest rates, we believe Powell is currently pursuing a prudent and appropriate monetary policy given the economic environment. The June 2025 Consumer Price Index (CPI) reading came in at 2.7%—above the Fed’s long-term target of 2%. While … Continued

Since August 2020, Strategy, formerly known as MicroStrategy, has been accumulating Bitcoin.  Under Michael Saylor’s management, this strategy has been hugely successful, leading to a 3000% increase in the price of the shares.  Under the blueprint developed by Saylor, the company uses periodic issues of high yield, perpetual preferred stock to finance adding bitcoin to the … Continued

Week of July 14, 2025 Equity markets largely pulled back last week after some had reached all-time highs the prior week.  Trade negotiations and tariffs took center stage once again, with the Trump Administration focusing on improved reciprocity on trade matters.  Our Signals were unchanged. Bob Bilkie, CFA

It sometimes seems that the political class will use every possible opportunity to describe what they are doing in a manner designed to confuse the greatest number of voters. If you understand the following analogy, you probably understand a significant part of the recently enacted BBB.   Assume your current cable bill is based on … Continued

Week of July 7, 2025 As has been noted many times, capital markets prefer certainty over uncertainty. Last week, several key uncertainties were alleviated: the signing of the One Big Beautiful Bill, signs that Iran’s uranium enrichment capabilities have been significantly curtailed, and a renewed commitment by NATO countries to increase defense spending—easing the financial … Continued

According to Investopedia, reshoring is the process of returning production and manufacturing of goods back to the company’s original country.  Reshoring is the opposite of offshoring, which is the process of manufacturing goods overseas to try to reduce costs and meet competitive challenges. Apparently, our president is dreaming of a domestic factory revival without addressing … Continued

Week of June 30, 2025 The Standard & Poor’s 500 stock index traded at an intra-day low on April 7 of 4,835.  It closed at an all-time high on June 27 of 6,173, a gain of nearly 28%. As a result of this strong move, we have adjusted our “Domestic Equity Investments” Signal from green … Continued

A homeowner’s association (HOA) is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the property owners.  HOAs are run by a board of directors and typically collect fees to pay for a wide range of services, including common area maintenance and upkeep of facilities.  The cost of … Continued

Week of June 23, 2025 While global attention remains focused on Iran, several other important developments continue to unfold beneath the headlines. In the Senate, Republicans are still working through the details of Trump’s “Big Beautiful Bill.” Meanwhile, the conflict between Russia and Ukraine grinds on in a virtual stalemate. On a more constructive front, … Continued