Lithium is a chemical element and is the least dense metal and the least dense solid element.  It is also the most commonly used metal for new energy applications.  Lithium batteries are widely used by the global vehicle industry. Investors should be aware that lithium and lithium batteries also come with a long list of … Continued

Week of December 5, 2022 Your turn, Mr. Powell. The uncertainty de jour is the course of action by the Fed on interest rates and the size of rate increases. The Christmas selling season should provide a glimpse of the power of the economic recovery. No change to our Signals this week. Bob Bilkie, CFA

It appears that interest in investing based on environmental, social and governance (ESG) factors is growing. The question is, how to go about it? To start with, how can investors themselves determine which companies live up to ESG standards?  Currently, they have little alternative to relying on outside raters.  However, ESG ratings vary substantially depending … Continued

Week of November 28, 2022 Russia quagmire in Ukraine? Check. Chinese citizens protest? Check. Divided US government? Check. US interest rates easing? Check. Gasoline prices moderating? Check. Patience? Check. Time to evaluate investments and rebalance where appropriate. No changes to our Signals this week. Bob Bilkie, CFA

What does affordable mean?  We now have the political class talking about “affordable” housing, “affordable” health care, “affordable” education, and consumer cost protections for essentials, such as energy and food, to mention a few of the “affordables” being bandied about.  The short answer to, what does affordable mean, is subsidy.  The key questions for investors … Continued

Week of November 21, 2022 Now that it has been confirmed that Republicans will control the US House, we contemplate the downside of divided government, which is an inability to compromise. In that regard, the US debt limit must be raised by the end of the year, and in the recent past this resulted in … Continued

Week of November 14, 2022 As suggested last week, the uncertainty of the outcome of the midterm elections largely influenced equity market volatility over the past several weeks and with the election over, capital markets staged a sharp upturn. It appears that there will be some form of divided government and all else equal, capital … Continued

The U.S. is nearing the end of its previously announced release of 180 million barrels (bbls) of oil from the strategic petroleum reserve (SPR). At the time of the release, the announced strategy revolved around the idea that this would increase supply, reduce oil prices, thereby moderating gasoline prices, and reduce pressure on U.S. consumers. … Continued

Week of November 7, 2022 Windstorms swept the Midwestern US over the weekend, creating some mayhem, but no lasting damage. Autumn leaves swirled and weak branches were strewn about. This was an apt metaphor for the actions in the capital markets this past week too, as the electorate awaits the outcome of this week’s poll … Continued

This quotation is attributed to Gordon Bethune, who, at the time, was CEO of Continental Airlines.  Investors should take note.  No matter how well run you believe the companies in your portfolio may be, it is important to recognize that the actions of competitors are material. It is probable that Mr. Bethune was thinking about … Continued

Week of October 31, 2022 The time has drawn to a close for an October political surprise. Current polls suggest a lean to the right in the House of Representatives and either a status quo or Republican takeover of the Senate. Should that occur, no policy changes could be expected as the president has the … Continued

No, not me, but Peter Lynch, who, in a conversation with Bloomberg News, as reported by the Los Angeles Times, when pressed on the record of active vs. passive management, said, “I don’t keep score, I’ve got 10 grandchildren…That’s what I keep score on.” For those too young to remember, Peter Lynch, now 78, was … Continued