The political class seems to think that a household income of $250,000 per year is middle class.  What do you think? Even a rudimentary familiarity with the realities of incomes in the U.S. would recognize that household earnings in that area are near the top of the range.  The most recent Census Bureau data showed … Continued

I thought one of my favorite quotes would be very timely today by Dr. Martin Luther King, Jr., “Darkness cannot drive out darkness; only light can do that.  Hate cannot drive out hate; only love can do that.” Whether discussing political issues, personal challenges, or economic and market forces this quote provides great perspective. Fear … Continued

Anyone that has actually waded through all of the footnotes that accompany public company financial statements should be aware that the accounting treatment for certain portions are complex and not as uniform as one might have thought.  In assessing an investment opportunity it is important to understand the ramifications of the applicable accounting standards and … Continued

It appears very likely that, in 2016, U.S. sales of motor vehicles will exceed 18.0 million, a new record, handily topping the previous record of 17.35 million vehicles in 2000. This is very good news, supporting an improving economy and providing the background for strong wage gains for auto workers.  Unfortunately, history tells us that … Continued

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