It is abundantly clear that society needs rules (regulations) in order to function. However, the rules need to be rational and serve the greater good rather than a means to achieve objectives that are not acceptable to the majority. Over the last year, the current administration, through executive orders, has been actively rolling back a … Continued
Meriam-Webster defines “coin of the realm” as: 1. The legal money of a country, or 2. Something valued or used as if it were money in a particular sphere. Investors and cryptocurrency enthusiasts should also consider another possible definition. A country’s coin of the realm (legal tender) is what the government (King) says it is. … Continued
Investors may want to consider the affect of too much information (TMI) on investment decisions. With CNBC broadcasting more than 12 hours every business day, it is easy to binge watch an endless flow of “news” which is often only someone’s opinion and frequently almost immediately contradicted by another commentator. Over the last several years … Continued
In Las Vegas, on any given day, a gambler can strike it rich or lose it all. However, over time, the house always wins. On Wall Street, on any given day, an equity investor can strike it rich or lose it all. However, over time, stocks have proven to be a winning bet. This is … Continued
It is becoming increasingly apparent that major TV entertainment events, such as NFL games and major award shows, are suffering from declining ratings. Most recently, viewership for the Grammy Awards were down approximately 24%, setting a nine year low. This is a significant development for broadcasters, advertisers and investors. According to a recent article in … Continued
Wikipedia defines conventional wisdom as the body of ideas or explanations accepted as true by the public and/or experts in the field. Wikipedia goes on to note that conventional wisdom is not necessarily true. It is, additionally, often seen as an obstacle to the acceptance of newly acquired information. Never-the-less, conventional wisdom, more often than … Continued
According to the Congressional Budget Office, the U.S. economy is running at its full potential, defined as the maximum sustainable growth rate, for the first time in a decade. Most economists agree that an economy’s sustainable growth rate is determined by how many people are working and how productive they are. It appears that the … Continued
Since the turn of the century, U.S. labor-force participation has been weakening. There have been numerous attempts to explain this phenomenon, with little agreement. Most of the theories have revolved around inadequate pay, increased safety net benefits such as disability payments, and the thought that a recovering economy would solve the problem by encouraging greater … Continued
Over the last several months, several major employers have announced increases in the minimum hourly rate they plan to pay during 2018 (see our blog from November 3). These planned wage increases have tended to anticipate that their lowest pay rate would approximate $11.00-12.00 per hour in 2018 with additional increases in future years. Subsequently, … Continued
Early in my career, a very successful investor shared this bit of advice with me. His logic follows: Companies do not like to report poor results or results that fall short of Wall Street estimates. Financial statements, both income and balance sheets, include a significant number of estimates. For example, balance sheets show accounts receivable … Continued
Everyone is probably familiar with the motivational efforts of sports teams’ managers and coaches and legendary half time speeches. Experience suggests that a team that expects to win, is more likely to be successful, and a team that expects to lose, probably will. Investors might want to consider if the same may apply to business, … Continued
Market observers are well aware of the immediate price reaction when a company’s quarterly earnings beat expectations, or fall short. Perhaps not quite as widely understood, is the significance of broader economic estimates. Over the last several years, economists have consistently underestimated economic strength, both in the U.S. and internationally. As a result, we have … Continued
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