According to Wikipedia, “the devil is the details”, is an idiom alluding to a catch or mysterious element hidden in the details; it indicates that something may seem simple, but in fact the details are complicated and likely to cause problems. With the mid-terms in all the news and the presidential election rapidly approaching, it … Continued

Week of August 24, 2026 Treasury Secretary Scott Bessent’s strategy of issuing more short-term Treasury bills while buying longer-term bonds may provide some temporary downward pressure on long-term rates, but we believe its lasting impact will be limited.  The most powerful way to lower interest rates is to reduce the federal deficit. Large deficits require … Continued

Week of August 17, 2026 Over the long term, capital markets are generally effective at incorporating all relevant information and determining fair asset values.  With the S&P 500 near all-time highs, a largely efficient market suggests that investors should be optimistic about the long-term outlook for equities.  Are corrections inevitable?  Yes.  But after more than … Continued

Wikipedia defines carrying capacity of an ecosystem as the maximum population size of a biological species that can be sustained by that specific environment, given the food, habitat, water, and other resources available. Between 1900 and 2020, Earth’s human population increased from 1.6 billion to 7.8 billion (a 390% increase).  This greatly increased human resource … Continued

Week of August 10, 2026 Last week, Abdul El-Sayed prevailed over Haley Stevens in Michigan’s Democratic senate primary race.  While he is not endorsed by the Democratic Socialists of America, El-Sayed’s policies are supported by socialist lawmakers such as Senator Bernie Sanders. Conceptually, the choice is between “unequal prosperity” and a stronger government role in … Continued

A modern-day version of an old fable updated to include leverage and greed.  Recent media reports outlining the extraordinary success of a young, tech savvy hedge fund manager illustrate what can happen when you get too greedy for extraordinary returns and employ reckless borrowing.  It all begins when Leopold Aschenbrenner, a valedictorian and OpenAI employee, … Continued

Week of August 3, 2026 As we suggested a few weeks ago, we applaud the appointment of Kevin Warsh as Federal Reserve Chair. His refusal to telegraph the future direction of interest rates briefly rattled the stock market, but we believe that is precisely the right approach. Markets should respond to economic fundamentals, not Fed … Continued

During nearly 70 years of employment as an equity research analyst, I never, not even once, asked for less information. Now comes a government plan to let public companies opt out of quarterly financial reporting. What are they thinking? U.S. securities regulation is disclosure-based. Reducing reporting requirements is clearly a step in the wrong direction.   All … Continued

Week of July 27, 2026 With no progress in U.S. – Iran negotiations, a stalemate increasingly appears to be the new normal. Iran can continue threatening shipping through the Strait of Hormuz while the U.S. continues its strikes. One consideration by the US might be to rally a coalition of major trading nations to impose a … Continued

Week of July 20, 2026 At the height of the U.S. – Iran conflict several months ago, West Texas Intermediate crude briefly surged to $114 per barrel. Despite renewed fighting last week, oil prices have responded far more modestly. The oil market may be inferring that Iran’s efforts are unlikely to significantly disrupt global oil … Continued

While inflation is not specifically a tax, both taxes and inflation have the same net effect of reducing purchasing power.  Consider, a worker’s gross pay is reduced by a variety of deductions, including income taxes, social security, and other accruals.  What’s left is generally referred to as “take home pay”.  Inflation erodes the purchasing power … Continued

Week of July 13, 2026 Several standoffs continue to shape the investment landscape: the United States and Iran, Republicans and Democrats over fiscal policy, Russia and Ukraine, and, perhaps most importantly, the tug-of-war between bond vigilantes demanding fiscal discipline and equity investors willing to pay ever-higher prices based on future expectations. None has reached a … Continued