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. […]
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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 […]
The U.S. Scene – From Our First Newsletter – September, 1995
Twenty Years On…
Hard to believe it has been twenty years since our first newsletter. Back then we were convinced that Value Investing was a profitable strategy. You can read our original thinking on Page2. Why Value? Because people don’t like to be associated with losers and they drive prices of many securities to levels below which they […]
This Picture Really is Worth 1,000 Words…
The chart below is really big… and also a bit complicated. But bear with me, it’s worth going through. Sometimes a picture is worth a thousand words. The black bars in this chart from JP Morgan show the price return of the S&P 500 for every year since 1980. The red dots show the largest […]
Finally, a Financial Dictionary That’s Fun To Read
Quick, what is the definition of “stock market?” According to Jason Zweig’s new book, The Devil’s Financial Dictionary, it is: “A chaotic hive of millions of people who overpay for hope and underpay for value.” Jason Zweig is investing and personal finance columnist at The Wall Street Journal. His lexicon, inspired by American satirist […]
