One of the more interesting business conundrums is; are prices set by costs or are costs reflective of prices?  Clearly, there are no easy answers.  Many business contracts are negotiated on a “cost/plus” basis, while others are based on a firm bid price for a specific product or service. Investors should be aware of the … Continued

A proliferation of rapid-delivery apps has turned the smart phone into a magic wand that can direct a wide variety of products and services to your door.  Of course, instant gratification tends to carry a price, with a plethora of fees, and delivery and service charges.  Is it worth it?  That is the critical question … Continued

This is an old adage, generally applicable to golf, in that if you have a good shot, you like it, if you have a bad shot, your opponent likes it. This concept tends to be just as true away from the game of golf.  For example, lower oil prices are good for motorists and other … Continued

Successful investing is not rocket science.  Morgan Housel, a columnist at the Motley Fool, recently wrote in The Wall Street Journal, “Live below your means.  Save the difference.  Invest in a low-cost, diversified portfolio.  Have a long-term outlook and be patient as compound interest works its magic.” This is an exceptionally clear and concise guide … Continued

With major defaults looming for Greece and Puerto Rico, and concern regarding Illinois and numerous U. S. cities, much has been made of profligate borrowers.  All of this coming after the major collapse in the U. S. residential mortgage market. How about irresponsible lending?  Did anyone really believe that lending money to homeowners, without adequate … Continued

Wikipedia defines Q.E.D. as an initialization of the Latin phrase quod erat demonstrandum, originating from the Ancient Greek, meaning “that which had to be proven.”  Perhaps a better translation would read, “The very thing it was required to have shown.” Why is this important to investors? With the ever expanding volume of financial news, there … Continued

Perhaps, but is this something that should be of concern to investors? Some market observers are suggesting that the stock market, after most major averages have reached new, all-time highs, may be in for a difficult summer.  This would be consistent with that old, sometimes accurate adage, “sell in May and go away”. Often cited … Continued

The University of Michigan recently reported its consumer sentiment survey numbers.  They were the second highest level since 2007, only below the January 2015 level.  This survey asks people questions about their current financial situation and how they feel it will change over the next twelve months, along with questions about their feelings on the … Continued

Over the last several years U. S. new vehicle sales have been gradually improving and, according to Reuters, November 2014 sales reached an annualized rate of 17.2 million, the best November since 2003.  This is in spite of a generally lackluster economy and concerns regarding consumer spending.  Not only was unit volume strong, but average … Continued

The day after Thanksgiving is referred to affectionately as “Black Friday.”  This term is used by the retail industry to indicate when companies in the sector become profitable (an old accounting practice was to show losses in red and profits in black on the ledgers).  Imagine that – it takes almost until the end of … Continued

In economics, present value is a future amount of money that has been discounted to reflect its current value.  In short, money now is worth more than money in the future. To put the issue in a context that should be familiar to most of us; if you put your house on the market, you … Continued

It is probably fair to say that the “rule of law” is one of the key pillars of our government and financial system.  Wikipedia defines the rule of law as “the legal principle that the law should govern a nation, as opposed to arbitrary decisions by individual government officials”. As investment advisors, we are well … Continued