Bargains can be a wonderful thing. People love getting a $100 pair of jeans for $50 — or a bottle of wine or anything else likewise discounted. The exception to this has always been stocks. When a coveted $40 stock goes to $20, it suddenly gets shunned, and that’s been especially true lately. Cheap stocks […]
News
When Will The Fed Raise Rates?
We don’t have any inside information on the workings of the Fed but our bet is that Janet Yellen and company will start raising short term rates in December. Or at least we think they should. At the last Fed meeting the decision was made to leave rates as is, and the stock market declined. […]
Knowing Which Way The Wind Blows
It is pretty difficult to know what’s what in the world of Global Warming, or should we call it Global Weirdness? The weather we get these days seems to come in only one size: extreme. The world’s biggest weather phenomenon, El Nino, is expected to occur again this year. El Nino comes around every two […]
Cognitive Impairment is a Risk for Everyone
Aging is never too fun to think about, but we all eventually see the physical signs: Slower marathon times, changing body shapes, and graying hair are, after all, hard not to notice. What we don’t recognize as well is cognitive decline, and as a result, we don’t do as good a job preparing for it. […]
Social Security’s Past, Present and Future
When designed back in 1935, Social Security was largely a pay-as-you go system focused on providing financial security to the elderly. Over the years, programs were added to include benefits for the disabled, widows and children. Today, over 59 million people receive almost $870 billion in benefits from one of several Social Security Administration programs. […]
CHART OF THE DAY: What happened in 2001 to make earnings reports matter more?
This chart comes from Maureen McNichols, Bill Beaver, and Zach Wang of the Stanford Graduate School of Business on how corporate earnings reports have been affecting stock price volatility after their release. The surprise: the effect of corporate earnings releases on stock prices has increased over time – not decreased — and the change has […]
QUOTE OF THE DAY on negative Italian bond yields
Yesterday, the FT reported that Italy sold 2-year bonds at a negative yield — joining Germany, France, and Switzerland as countries where the rate to borrow money is negative. A negative yield means investors are paying the Italian government for the right to lend it money, and remember, Italy has one of the highest debt […]
The First and Probably the Last
Comment that is, by us on the Presidential Campaign. We have enough trouble commenting on Wall Street. Politics is a whole other kettle of fish. But we spotted some things you might find interesting. The chart below is kind of busy but the message is pretty simple. Since 1990 Democrats have gotten more liberal and […]
Technology and the Internet of Things
The Economist did a special report recently (October 3, 2015) on the World Economy. They talked about rise of China, the shift from developed world growth to emerging markets and the future of America. They concluded that the U.S. is still a “sticky economic superpower”. The chart at the bottom shows where America was 10 […]
The State of World Housing Markets
What are housing prices telling us? Assessing prices usually is complex because housing itself is complex: It fulfills an essential human need, yet also serves as an investment vehicle and a store of wealth – for many, the largest component of their wealth. What’s more, interpreting house valuations requires the context provided by credit growth, […]
The Buyback vs. Dividend Debate
There seems no shortage of things to worry about these days. Is China’s economy decelerating? What will an increase in interest rates do to the stock market? And let’s not forget the ongoing political upheaval in the Middle East. But in the midst of this angst, it is important to remember that Corporate America is […]
Welcome to our 20th Annivesary Issue…
On the next page you can see the very first article on Value Investing that we published in September 1995. Next to it is our most recent one, written this month. Perhaps you’ll see what we see: that the principles of Value Investing remain very much the same. The world we are looking at today […]
