Week of April 15, 2024 Domestic common stocks generally advanced in 2023. Some of the gains were realized by investors, meaning tax bills need to be paid by April 15. The funds to pay those taxes, to a degree, are generated by selling more stocks in the mid-April period and last week saw broad common … Continued

The Federal government and many individuals have been on a deficit spending spree. Economists generally agree that more deficit spending by government increases inflation.  Individual’s deficit spending, through a seemingly endless increase in credit card balances, also contributes to inflationary forces.  There is no deterministic model to determine how government (and household) budget deficits drive … Continued

Week of April 8, 2024 The Wall Street Journal published an article on April 7, 2024 noting that the “…Needham Growth Fund (NEEGX), a $208 million midcap growth portfolio… ranked third…” for performance in the first quarter of 2024.  The article then notes that one of the portfolio companies is Thermo Fisher Scientific, a $220 … Continued

The word loss is often used to describe actual losses and sometimes used to describe, what is more likely to be a “temporary”, change in value.  For example, if you buy a lottery ticket, after the drawing, you either won or lost, and time will not change the outcome.  On the other hand, the value of … Continued

Week of April 1, 2024 While geo-political events continued to dominate the headlines, the Standard & Poor’s 500 stock index quietly registered the strongest first quarter gain in 5 years.  Interest rates largely held steady as inflation continued to moderate – evidenced by the personal consumption expenditures index gaining 2.8% for February.  Our Signals remain … Continued

On November 30, 2022, we posted a blog titled “The ESG Conundrum“, that suggested that rising interest in ESG (environmental, social and governance) investments presented a challenge to prospective investors.  With no clear definitions, we concluded that ESG was essentially what the portfolio manager said it was.  We also questioned whether the pursuit of ESG criteria … Continued

Week of March 25, 2024 Last week the EPA pushed back its CO2 emissions requirements by two years to 2032. Gas powered cars will not be able to make up more than 30% of an auto manufacturer’s sales. This gives the likes of Ford and General Motors two extra years to figure out how to … Continued

Historically, homeownership has been viewed as a conservative path to building wealth.  However, the recent housing bubble, that saw values peak in 2006 and not fully recover until some ten years later, gave pause to the idea that owning your home is the best option.  For most people, a home is both an investment and shelter.  … Continued

Week of March 18, 2024 Last week brought more troubling news (news, as in multiple cases of cause for concern) for the iconic plane maker, Boeing.  The stock price, trading near its 52 week low in an otherwise rising market, forces investors to take notice of how once dominant companies can so easily go off … Continued

Week of March 11, 2024 From the website www.goodreads.com: “We find that whole communities suddenly fix their minds upon one object, and go mad in its pursuit; that millions of people become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first.” … Continued

But you can’t make it drink.  This old proverb may be applicable to the current state of demand for electric vehicles (EVs).  After an initial surge of enthusiasm, fueled in part by Tesla’s success in the face of limited competition, unsustainable subsidies and strong initial demand by early adopters, realism seems to be setting in. … Continued

Week of March 4, 2024 On June 1, 2022, the CEO of Chase Bank – Jamie Dimon – warned employees of the bank to “brace yourself” for an economic hurricane.  This caused quite a stir among government policy makers, investors and consumers given the powerful role that the bank played – and plays – in … Continued