According to Investopedia, the Nifty 50 was a group of stocks that were most favored by institutional investors in the 1960s and 1970s. Companies in this group were usually characterized by consistent earnings growth and high P/E ratios. Recently, The Wall Street Journal published an article that started with the statement, “a rally in stocks … Continued
We have previously commented on the status and complexity of Great Britain’s struggles with Brexit, most recently on April 30, 2019 (Understanding Brexit). Boris Johnson has won the race to lead the ruling Conservative Party and become Britain’s prime minister, succeeding Mrs. May. He inherits the difficulties and conflicts of the country’s decision to leave … Continued
We have previously commented on proposals by economists and political scientists that would substitute universal income policies as credible alternatives to existing social programs such as unemployment insurance. (See blogs dated 2015-12-17, 2016-11-22, 2018-05-02 and 2019-02-21). The idea is straight forward: Provide citizens with a minimum allowance, without means-testing, that would give everyone the wherewithal … Continued
On February 28, 2013 we posted a blog titled, “The importance of predictability or, just tell us what the rules are.” The themes discussed in that blog remain just as relevant today, despite changes in Congress and the White House. It is difficult to overestimate the importance of being able to plan ahead. Investors in … Continued
It seems that the financial media is currently consumed with short-term interest rates, persistently and continuously over-analyzing the prospects for even the smallest shift in Federal Reserve Board (FRB) thinking. This is not useful. Investors are likely to be best served by developing, and then sustaining, a long-term investment strategy that suits their specific circumstances. … Continued
Most Americans are not contributing enough to their retirement plans in order to comfortably retire by the age of 65. With the gradual demise of defined benefit pension plans, in favor of defined contribution plans, it is incumbent on individuals to take responsibility for their long-term financial security. However, because the shift to defined contribution … Continued
Wikipedia defines logistics as the detailed organization and implementation of a complex organization. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption. We recently discussed the concept of the “last mile”, primarily in the context of the telecommunication industry, (see … Continued
Over the last several decades there has been a sea change in funding for employee pensions. Historically, pensions have been based on defined benefit formulas that provided retirees with a set dollar amount, based on salary, tenure and other factors. Under the defined benefit system, any shortfalls in funding were the responsibility of the employer. … Continued
In the context of human resources, turnover is the process of replacing a departing employee with a new hire. An organization’s turnover experience is measured as a percentage rate, which is referred to as its turnover rate. Investors should be aware of the turnover rate when considering an investment opportunity. High turnover has often been … Continued
Wikipedia defines a short squeeze as a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock. Short squeezes result when short sellers seek to cover, or are forced to cover, their short positions, either because they can no longer … Continued
According to Wikipedia, the last mile is a phrase widely used in the telecommunication industry to refer to the final leg of the networks that deliver telecommunication services to retail end-users. The actual length of the “last mile” may be more or less than a mile. The “last mile” is typically the speed and cost bottleneck … Continued
This well-known quote is reputed to have been Mark Twain’s response to news of the publication of his obituary. Investors might want to note that premature obituaries can also occur in the world of stock market punditry. Recall that throughout the fourth quarter of 2018, conventional wisdom was suggesting that the stock market had peaked … Continued
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