Recent speculation relating to the possible acceptance of Bitcoin by Amazon led to another flurry of volatility for cryptocurrencies. Investors might want to take a deep breath, step back, and consider if this makes sense, is even feasible, much less practical. Amazon has stated that the company has no immediate plan to accept Bitcoin for … Continued
As the Biden administration considers options to fund proposed spending, the possibility of a wealth tax continues to surface. While there are no specifics, or bills in Congress, at this time, investors may want to consider some of the potential consequences, intended and/or unintended. It should be recognized that the idea of a wealth tax … Continued
The need to raise taxes is definitely front and center in the news, driven by the administration’s unprecedented pursuit of unfunded spending. This has led to an increase in the concept of “fair share”, a concept that defies definition. Perhaps it would be constructive to examine the whole idea of taxation. One might think that … Continued
According to data from Freddie Mac, Americans are back to tapping their homes for cash. During the first quarter of 2021, home equity loans cashed out, reached an estimated $49.6 billion, up nearly 80% from the year ago period, but still below the $84 billion quarterly cash-out rate reached in 2006. A decision that proved to … Continued
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
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