Adjusting prices to reflect shifts in demand is hardly a new concept.  However, the concept seems to have gained an increase in visibility with Uber’s introduction of “surge pricing”, an effort to match demand with the availability of drivers.  Unlike traditional enterprises, Uber depends on their driver’s making themselves available.  Presumably, surge pricing would encourage … Continued

The issue of pay day loans has been in the news lately with a recurring theme that suggests that the industry is an exploiter of the less well off.  Typically, pay day loans average approximately $400, with a duration of about two weeks.  The annualized cost of these loans, including fees and interest, has been … Continued

As we know, the price of oil is generally quoted in dollars, and the most common reference points are Brent and WTI (West Texas Intermediate).  Due, in part, to increased press coverage and continuing consumer interest in the price of gasoline, most investors are generally familiar with current oil prices. Economists will tell you that … Continued

Something we all use and probably don’t think too much about, except when the bill comes or someone talks about renewable energy and climate change. It is probable that electricity consumption will increase, at least in total if not on a per capita basis. Investors should consider how we are going to meet demand while … Continued

According to Wikipedia, “freedom of the seas” is a principle in international law and law of the sea.  It stresses freedom to navigate the oceans. Like any law, enforcement is sometimes required.  Historically, during a period of relative peace (1815-1914), often referred to as “Pax Britannica”, the Royal Navy was, in effect, the guarantor of … Continued

Our Chief Investment Officer, Denise Farkas, and I were at the Chartered Financial Analyst (CFA) Institute’s Annual Conference earlier this week.  We thought that it would be a good idea to share some insight with our readers on trends and changes in the global oil market. First, the global oil market is experiencing a structural … Continued

It is fairly well established that no one has been able to consistently pick market tops and bottoms.  Of course, that is not stopping people from trying.  One anecdotal clue, that has some currency in the investment community, is the concept of cyclical companies announcing headquarters upgrades and expansions at or near the top of … Continued

This is a country music song written by David Allan Coe and popularized by Johnny Paycheck.  Perhaps you should be careful what you ask for. Between the increasing use of automation and rising minimum wages, the potential for reduced employment opportunities may make it increasingly important to hang on to the job you have. There … Continued

Money not only talks, but it sings and dances.  Therefore, when the Federal Reserve Bank talk’s people not only listen, but they analyze, strategize, speculate, and more.  The Fed’s power has significant influence over global financial markets and the world, making their words and actions of the utmost importance to us all. Given the recent … Continued

Investing in industries that enjoy significant subsidies may carry additional risks.  Subsidies, typically granted by government to support desired public policy, can also be revoked or materially altered. For example, home solar panel systems have seen considerable growth, particularly in states that have mandated large payouts to residents who generate more renewable energy than they … Continued

According to Wikipedia, the term saber-rattling, was based on an incident in Chilean history that took place on September 3, 1924, when a group of young military officers protested against the political class and the postponement of social measures by rattling their sabers within their scabbards. The term is now applied generally to cover an … Continued

The world is awash in irresponsible borrowing.  Governments, companies and individuals borrow money without a clear path to repayment.  In addition, governments and companies commit to long-term obligations, primarily in the areas of retirement and health care, without appropriate funding.  Unfunded liabilities are, for all practical purposes, debt. This tendency has been exacerbated by unusually … Continued