Just Tell Me What the Rules Are

Humans are generally not constructed to deal well with uncertainty.  Investors need predictability in key areas such as accounting, regulation, taxation and political whim, to mention a few.  While no system is perfect, investors in U.S. based companies enjoy a relatively greater degree of consistency than is the case for many other jurisdictions.  The most … Continued

The U.S. Economy Does Not Have a Demand Problem

Some observers seem to be able to detect signs of a slowing in U.S. economic growth, even though in reality, companies cannot produce enough to meet customer orders.  U.S. industry is dealing with near record raw material lead times, fluctuating commodity prices, with an upward bias, transportation bottlenecks and worker shortages.  No wonder economic activity, … Continued

Vehicle Prices Are Soaring

Both new and used car and truck prices have been soaring as major manufacturers have had to curtail production because of worldwide shortages of essential semiconductors. This presents a serious dilemma for consumers and investors.  Clearly, this not a good time to buy a new or used vehicle.  Prices are up significantly across the board … Continued

Who Has Your Back?

Most of us are familiar with that line on numerous forms that asks for an emergency contact, and have no trouble answering.  Unfortunately, there are some who do not have a reliable emergency contact. Clearly, this is an issue that should be addressed sooner rather than later.  In the absence of an appropriate relative, this … Continued

Bitcoin as a Currency?

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

Wealth Taxes

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

Taxes: Rates Versus Revenues

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

Here We Go Again

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

Non-binding, Feel Good Agreements

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

Electric Vehicle Demand

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

Political Facts

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

Smoke and Mirrors

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