Much is being written about the dilemma that President Obama faces on what to do about Syria. This issue has far more to do with politics, both domestically and globally, than it does with investing. From an investment perspective, the more perceived risk (wars, strife, economic imbalances, etc.), the higher the discount rate and vice-versa. … Continued

According to Wikipedia “In parliamentary systems of government, the term loyal opposition is applied collectively to the opposition parties in the legislature that indicate that the non-governing parties may oppose the actions of the sitting cabinet while remaining loyal to the source of the government’s power.” This suggests that the majority party also owes a … Continued

It has been alleged that Edward VII (1841-1910) once said, “I don’t very much care what people do as long as they don’t do it on the street and frighten the horses”. Perhaps a more modern version could be applicable to Egypt, “don’t frighten the tourists”. The higher echelons of the Egyptian army are widely … Continued

Seeing how far the “Britishers” will bear provocation. “To give the lion’s tail another twist” is to tax British forbearance a little further. No doubt the Kingdom is averse to war with civilized nations, and will put up with a deal rather than apply the arbitration of arms. Even victory may be bought dearly. Such … Continued

Earlier this week Louis Chenevert, CEO of United Technologies (UTX), was interviewed at the Paris Air Show. UTX is the manufacturer of the Pratt and Whitney airplane engines as well as the Sikorsky Helicopter. Chenevert was very bullish on the airline industry for the next one to two decades! When pressed on the reasons for … Continued

In order to enhance my grasp of global economic issues, I subscribe to a newsletter service called Stratfor. Many large corporations and government agencies are also subscribers because the company’s analysts are former military or intelligence personnel and their perspectives are often unique and valuable. I consider the owner of Stratfor, George Friedman, to be … Continued

A recent Wall Street Journal article reported one of many challenges China is facing: fast-growing numbers of elderly people. By 2015 there will be 220 million people older than 60 years old in China, compared with about 180 million today. According to the projections from the National Bureau of Statistics, within 40 years China will … Continued

Having just returned from a voyage that included a stop at Gibraltar, I was reminded of just how dependent the world is on ocean traffic and the existence of several major, potential choke points, such as Gibraltar, Suez and the Straits of Hormuz. The US, accounting for more than 20% of the world’s goods and … Continued

While it is unlikely that Voltaire had fossil fuels in mind when he wrote those words, several hundred years ago, the fit, for the US, is quite compelling. We use and need a lot of energy. We account for approximately 5% of the world’s population but contribute more than 20% of the world’s goods and … Continued

In view of the recent and well-publicized financial situation in Cyprus, investors may want to recall and consider that well known quotation, “A government big enough to give you everything you want, is a government big enough to take away everything you have.” All comments and suggestions are welcome. Walter J. Kirchberger, CFA

Last July we blogged about the outlook for energy in general and natural gas more specifically, particularly with regard to the potential for significant exports of liquefied natural gas (LNG). Now we have Japan’s Prime Minister meeting with our President to seek his support for shale gas imports to Japan. This is going to be … Continued

Recently released data showing that the growth in China has slowed is raising concern for its once fast-growing economy. China has long relied on exportsto fuel their growth. Exports generated 31% of GDP in 2011, according to World Bank data, and support an estimated 200 million jobs – around a quarter of the country’s workforce. … Continued