2011 August

Your mutual fund is under-performing, but you probably don’t know it…

Standard & Poor’s Global Research & Design Group provides performance comparisons for actively managed funds versus S&P indices. It’s called SPIVA and it’s published semiannually. We are preparing an in-depth analysis to be published soon, but I will share some important findings at this time. For the last five (5)  years, ending June 30, 2011: .. read more

On August 31st, 2011, posted in: Markets by

Fannie Mae Shovel Ready?

So one politician says to another, “Hey wouldn’t it be great to have cheaper and guaranteed financing for government planned projects?” “Sure would create alot of jobs” Poof the idea of an Infrastructure Bank.  A government sponsored entity, GSE, created under the premis of rebuilding America’s dated infrastructure. An Opinion piece in today’s Wall Street Journal explains .. read more

On August 31st, 2011, posted in: Markets by Tags: ,

European Union

The politics of the European Union is worth following. Can the leadership keep the union together? The course of action pursued to date, has stronger countries bailing out troubled countries; this is essentially a welfare system.  There seems to be some animosity building as a result of this policy.  Germans are angry and don’t feel .. read more

On August 30th, 2011, posted in: Markets by

Housing prices are still very weak.

The national index fell 5.9% from June 2010, its fastest rate of decline since 2009. The 10- and 20-City indices declined 3.8% and 4.5%, respectively. Also, consumer confidence plummeted to 44.5, the lowest number since April 2009 and not far above record lows. Markets were expecting 51.9, a big decline from 59.5 but not this dramatic.   .. read more

Contrarian Alert

As Joe has discovered, I tend to like a pictorial story.  As a start to a series looking at the housing sector, let’s look at what is happening in the macro economy, beginning with the monetary and credit mechanisms. What happens to a dollar in our system?   Dollars are constantly changing hands, but at any .. read more

On August 29th, 2011, posted in: Markets by Tags: , ,

Thinking Things Over: How Does an Economy Grow?

Thinking Things Over Musings on the Markets from Inside the Beltway By John L. Chapman, Ph.D.                                                                                           Vol. I, No.6  082811 In this note: Bernanke’s speech on Friday at Jackson Hole, WY Warren Buffett and investing in Bank of America How an economy grows – and how investors secure a happier future Next week: What is “capital” .. read more

On Warren Buffett, Taxing the Rich, “Fairness”, and Economic Growth

By John L. Chapman, Ph.D. Warren Buffett, the world’s second richest man and a wildly successful investor for half a century, wrote a provocative essay last week in the New York Times in which he called for higher taxes on the rich.  Mr. Buffett, a lifetime Democrat and strong supporter of President Obama’s philosophy of .. read more

On August 28th, 2011, posted in: Markets by Tags: ,

Weekly Economic & Market Review

Well, the waiting is over. Ben Bernanke spoke, announced no new quantitative easing, scolded the politicians and…the world didn’t end. How could that be? For the last two weeks, all I heard was that Bernanke’s speech at Jackson Hole was the most important thing on the agenda and that “the market” was expecting him to .. read more