As recessions go, 2020 was clearly different. At least in aggregate, household net worth increased, instead of experiencing significant economic stress. The most recent Federal Reserve data indicates that household net worth increased to $122.9 trillion in the fourth quarter, from $114.2 trillion in the year-ago period. By comparison, during the previous recession, household net … Continued
China is putting forth a vision of continuing economic growth in conjunction with a reduction in greenhouse gas pollution. The plan calls for a peaking in carbon dioxide emissions by 2030, and net carbon neutrality before 2060. This may be difficult. We have previously discussed China’s dependence on coal. (See our blog dated 2019-2-13). China’s … Continued
New data for 2020 suggests that there has been a sharp decline in the global birthrate. Apparently, the combined effects of the pandemic, lockdowns and the global recession that followed, have contributed to a reduction in the world wide fertility rate. We previously discussed the expected long-term decline in the U.S. birth rate in our … Continued
Investors have long sought to generate investment returns with a variety of objectives, including above average performance and/or consistency. Over time, investors and their advisors have developed a range of strategies, initially with carefully selected individual securities. Later, new options emerged through actively managed mutual funds, passively managed Index funds, ETFs, and, more recently, highly … Continued
Recent events relating to power shortages in Texas have raised additional concerns over the reliability of the nation’s electricity grid. Similar problems last summer in California, triggered by an historic heat wave, have given way to widespread finger pointing and debates over the efficacy and reliability of various generating sources. It is unlikely that there … Continued
Universal Basic Income (UBI) has, in recent years, been the topic of considerable discussion and some experimentation, primarily in Europe, as the answer to poverty, automation and the drudgery of work. We have previously commented on various proposals and some of the potential benefits and problems. (See blogs dated 2015-12-17, 2016-11-22, 2018-05-02, 2019-02-21, 2019-07-24 and … Continued
The conundrum facing current and potential investors in crypto currencies is, valuation. Bitcoin does not derive its value from any assets or earnings. Hence, the value depends entirely on what an investor is willing to pay for it. Valuation metrics for more established investment vehicles have been fairly well established. Bond valuations are based on … Continued
FOMO is an acronym for “fear of missing out,” which is a social anxiety stemming from the belief that others might be having fun while the person experiencing the anxiety is not present. Social networking may have broadened the opportunity to feel left out. FOMO may partly explain the social network driven dramatic increase in … Continued
In light of the recent exceptional volatility in some investment opportunities, it might be worth remembering that bubbles have raised and dashed the hopes of speculators for centuries (see our blog Tulip Mania – A Reminder). One of my favorites is the great Beanie Baby bubble of the late ‘90s. With no big-box distribution or … Continued
Recent events and media coverage surrounding the rise of Robinhood and Reddit suggest that many investors, particularly those recently attracted to stock market opportunities, may not only lack experience but also have a very limited understanding of the regulatory environment. Individual and institutional investing activities are subject to a wide range of rules and regulations … Continued
Thanks to Canada and the Jones Act, it now appears almost certain that Alaska’s cruise season will be canceled for a second straight summer. On Thursday, Feb. 4, Canada announced a continuation of prohibitions on cruise vessels operating in Canadian waters until February 2022. Under America’s Jones Act, (Merchant Marine Act of 1920) foreign-flagged ships … Continued
On Feb 16, 2018 and Jul 12, 2019 we posted blogs titled “Coin of the Realm” and “Coin of the Realm – Update” in which we suggested that legal tender is what the government says it is and governments don’t like competition. Government action has always been a risk factor for investors in cryptocurrency. Recent … Continued
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