The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect supply and demand.  As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows. While market forces are likely to allow supply and … Continued

Week of June 3, 2024 The Biden Administration announced a proposed set of tariffs on imported goods from China.  In particular, Chinese electric vehicles will have a 102.5% tariff rate on the value of the car.  Tariffs are imposed to protect domestic industries (i.e., the US Auto industry) from losing sales to foreign competitors that … Continued

Most of the world’s vehicle manufacturers and a number of current and future suppliers continue to pursue the development of autonomous vehicles.  On August 24, 2016 we posted a blog, “Autonomous Vehicles,” that summarized progress and outlined the classification system for defining the differences between levels of automation.  Much has transpired in the last eight … Continued

Seeking increased revenue appears to be a chronic preoccupation among our elected officials.  However, with December 31, 2025 expiration of major pieces of former President Trump’s 2017 tax law, we can expect increases in commentary and new heights of obfuscation.  While it is impossible to handicap the eventual outcome, investors should prepare for some targeted … Continued

Week of May 20, 2024 When the news cycle is devoid of meaningful developments and capital markets are moving sideways, nervous energy can creep into the psyche. Nicholas Murray Butler, President of Columbia University in the 1930’s, opined that “Nervous energy is the greatest destroyer of portfolio wealth.” Caveat emptor. Our Signals remained unchanged this … Continued

Week of May 13, 2024 On April 19, the Standard & Poor’s 500 stock index hit a monthly low of $4,967. As of May 10, it sits at $5,223, a gain of 5%.  What changed in three weeks to precipitate this rather heady, short-term advance?  Nothing.  Purely a psychological shift, a normal factor in free … Continued

For most of us, the most significant negative cash flow asset in our portfolio is our residence.  Yes, if you own your home, you may benefit from the long-term trend of rising real estate prices, and, you have the essential benefit of shelter.  However, home ownership comes with a long list of expenses, including insurance, … Continued

Week of May 6, 2024 May 4, 2024 was the Berkshire Hathaway annual shareholders meeting.  Chairman Warren Buffett intoned many years ago that “In the short term, the market is a popularity contest; in the long term, it’s a weighing machine.”  His late Vice-Chair, Charlie Munger, preached patience.  Of course, for investors, patience means having … Continued

According to an article published in USA TODAY, America has a new epidemic.  It doesn’t respond to traditional therapies, even though it has debilitating and often deadly consequences. The problem, gradually becoming more pervasive, is loneliness.  US Surgeon General, Dr. Vivek Murphy is hoping to generate awareness and offer remedies before it claims more lives.  … Continued

Week of April 22, 2024 We have changed our Monetary Policy signal from green to yellow, given the recent firming of inflationary pressures in the US and the likelihood that the Fed will have to slow its expected pace of monetary easing. We also replaced “China” with “Middle East“ as a focus of the Biden … Continued