“Silent Spring” is an environmental science book written by Rachel Carson, and published on September 27, 1962, that documented the adverse effects on the environment by the indiscriminate use of pesticides. Although “Silent Spring” was met with fierce opposition by chemical companies, it spurred a reversal in national pesticide policy, and led to a nationwide … Continued
It is becoming increasingly evident that money is now almost entirely transferred electronically. Recently, the deputy governor of the Norwegian central bank suggested that the level of transactions in that Scandinavian country is now so low that it can be considered cashless. Central bank data indicates that less than 10% of the number of transactions, … Continued
Recently, the Army announced that it will not meet its goal of recruiting 80,000 active-duty soldiers this year, and has lowered the goal to 76,500 for 2018. The struggle to meet this year’s recruiting goal was attributed to the favorable U.S. economy, increased completion from private-sector employers and the declining quality of potential recruits. On … Continued
While our title comes from the classic anecdote of a kid riding his bike without using his hands on the handle bars, it is certainly applicable to the current enthusiasm for autonomous driving systems. Investors interested in the potential for autonomous driving might want to devote some attention to the question of when rather than … Continued
Corporate misfeasance is not a new problem. While there are exceptions, such as Enron, the perpetrators, including employees, supervisors, senior management and directors, face little or no serious punishment. On the other hand, shareholders nearly always take a hit. For example, Wells Fargo has engaged in a number of unacceptable practices and recently agreed to … Continued
We have previously commented on proposals by economists and political scientists that would substitute universal income polices as credible alternatives to existing social programs such as unemployment insurance. (see blogs dated 2015-12-17 and 2016-11-22) The idea is straight forward: Provide citizens with a minimum allowance, without means-testing, that would give everyone the wherewithal to live … Continued
Investors typically think of diversification in terms of fixed income versus equity and a suitable range of specific investments in each asset class. However, employees of companies with publicly traded shares and robust pension and retirement programs, may not be fully recognizing the additional risks involved. A recent article in The Wall Street Journal, discussing … Continued
Wikipedia defines death spiral financing as a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall. While generalization is fraught with risk, typically companies require multiple financings to … Continued
With the unemployment rate at approximately 4%, the lowest since 2000, economists have been surprised by the slow growth in paychecks. Historically, when that few people are unemployed, companies have had to pay up to attract workers. Clearly, anecdotal evidence and government reports suggest that the U.S. is in a tight job market, yet pay … Continued
During periods of above average market volatility, or sharp moves in either direction, investors and advisors are likely to wonder if some action might be appropriate or expected. This natural reaction may be exacerbated by an endless stream of punditry and suggested strategies from CNBC and other media outlets. In most cases, the most appropriate … Continued
According to Wikipedia, misdirection is a form of deception in which the attention of an audience is focused on one thing in order to distract its attention from another. While misdirection has generally been associated with magicians, CEOs have not been immune to the opportunity. Investors should be careful in reacting to corporate announcements that … Continued
It is now clear that congressional budget compromises are an excuse to spend more on everyone’s wish list rather than to make hard decisions regarding appropriate priorities. Running up the deficit is not a recent phenomenon. Adding to the national debt has been the reality of both political parties for a long time, as no … Continued
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