According to Wikipedia, dynamic scoring is a forecasting technique for government revenues, expenditures, and budget deficits that incorporates predictions about the behavior of people and organizations based on changes in fiscal policy. A dynamic scoring model may include expectations as the population adapts to the new policy. Alternatively, static scoring makes simpler assumptions regarding behavior … Continued
The importance of corporate governance and shareholder rights has recently made headlines with the implosion of the proposed initial public offering (IPO) of WeWork. We discussed this issue in our blog, “Corporate Governance/Shareholder Rights,” posted 15 Mar 2017. It is evident that investors have now become somewhat more discriminating in evaluating potential IPOs. While governance … Continued
“You Need to Calm Down” is the title of a recently released song by singer-songwriter Taylor Swift. While this is probably good advice for all of us, it is particularly appropriate for investors. With a constant drum beat of conflicting investing and political commentary, markets tend to be subject to frequent, short-term, and often ill-advised, … Continued
The global auto industry is scrambling to meet carbon-emission mandates and, currently, EVs appear to be the solution of choice. Unfortunately, advances in battery technology and cost are not cooperating. Cutting the cost of batteries is probably the industry’s most urgent challenge. Batteries are estimated to account for 35%-45% of EV total costs. Unless EV … Continued
Beta testing is generally defined as external pilot-testing of a product before commercial quantity production. At the beta test stage, the product has already passed through first-level, internal pilot-testing (alpha testing) and glaring defects have been addressed. Beta testing puts a new product through “real world” testing by selected customers under normal, everyday conditions. Investors … Continued
One of the few things that investors can absolutely count on is that there will be a next recession. Currently, recession talk has completely taken over the discussion on Wall Street and CNBC. Economists and other prognosticators seem to be constantly competing with each other to be the first to predict the next downturn in … Continued
Near record unemployment rates and an increase in help wanted signs would suggest that there is a labor shortage. If this is the case, we should be seeing the signs of a tight labor market, with wage growth and inflationary pressures. Surprisingly, wage growth has been modest and inflation has been relatively benign. What is … Continued
According to Wikipedia, survival of the fittest is a phrase that originated from Darwin’s evolutionary theory as a way of describing the mechanism of natural selection. In the corporate world, perhaps an appropriate corollary would be, survival of the lowest costs, and the probable fate of high cost producers as an industry develops excess capacity. … Continued
Purely on the basis of anecdotal, personal experience, it appears that English is increasingly becoming the world’s second language. As of 2019, there are 55 sovereign states and 27 non-sovereign entities where English is the official language. More important to business and leisure travelers, even in countries where English has no official status, there seems … Continued
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
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