Investing Tomorrow

In the musical “Annie”, (1977), the star sings: “Tomorrow, tomorrow, I love ya tomorrow, you’re only a day away”. In the depths of a recession, as portrayed in the musical, a sunny outlook is clearly heartwarming, and suggests that things will get better soon. In the cold world of investing, tomorrow is always a day … Continued

Investment Chef

There is something about food that creates a love close to everyone’s heart.  It is not just the food alone, but the preparation of the food that makes it so special.  At its most elemental level, the art of cooking is about chemistry.  The chef develops the art form in which ordinary ingredients are combined … Continued

Investment Trend in the US Auto Market

Phil LeBeau, from CNBC, recently published an article highlighting trends in car buying.  One of the statistics mentioned in the article stood out to us.  That is, nearly 25% of new auto loans have payment terms between six and seven years.  Currently, auto loan terms have been extended to record highs due to increased vehicle … Continued

Staying the Course

As a follow-up to our blog titled “Market Peaks”, we cannot emphasize enough the implicit assumption that stocks can provide very attractive returns over the long term but to achieve those returns, investors must be committed to owning stocks, and have the stomach to hold on to their positions during periods of market weakness. Through … Continued

Market Peaks

The markets, as measured by the popular averages, are currently trading at, or near, record highs.  Now what? Perhaps the markets will continue to gradually move up, not every day, but on most days, leading to new highs. Alternatively, we may see a modest correction, possibly on the order of 10%, followed by a resumption … Continued

Investing In Bonds: Where Do We Go From Here

Admittedly, the bond market is far less exciting than the stock market.  Yet, we believe it is imperative for investors to understand basic fundamentals of fixed income investing and align their portfolios not only according to the current yield curve but given an expectation of where future rates may be headed. For perspective, the 10-year … Continued

Invest Now or Wait for a Correction

The hardest time to make an investment decision is now.  Currently, the issue confronting prospective investors is the extent of the market recovery since the 2008-09 lows and whether it would be smarter to wait for a correction.  If the market does weaken, the new big question becomes, “how extensive will the correction be and … Continued

Investing in Natural Resources

A great deal of the debate over the perceived limitations of the world’s natural resources appears to reflect a lack of understanding of the difference between shortage and scarce.  A shortage is generally defined as not enough of something that is needed and scarce is defined as a small amount, not plentiful. Consider, Super Bowl … Continued

Bubbles, Bull and Bears

On May 15, 2014, the Dow Jones Industrial Average dropped 1.6%.  The decline was attributed to a bearish comment made by a well respected investment professional, David Tepper.  “I’m not saying go short, I’m just saying don’t be too fricking long right now,” he said. Another successful investor, Jeremy Grantham, wrote recently in his investment … Continued

Climate Change: The Useful Debate

It seems that a lot of the debate over climate change/global warming is in part centered around definitions and in part about grants and agendas. The useful debate should be, is it better to try to slow the pace of climate change or prepare to live with the “inevitable”? In an effort to clear the … Continued