Douglas R Terry, CFA

Distorted Hayekian Triangle Reality

In 1935 Friedrich A. Hayek presented the following diagram of the productive stages of an economy’s production.   The insights drawn from this depiction of an efficiently allocated economy form the basis of Austrian Business Cycle Theory. A voluntary decrease in consumption and commensurate increase in savings lowers the slope of the hypotenuse, thus the .. read more

Facebook

I have to call this out.  Representing this move as an intelligent, strategic corporate decision looks, from the other guys point of view, like you’re spitting in his face.  Via Reuters: Facebook has crystallized its blunder of an initial public offering with a stock buyback. Mark Zuckerberg’s social network will essentially cut its outstanding share .. read more

On September 5th, 2012, posted in: Stocks by Tags:

Tactical Update

A trend or perhaps out-performance can sometimes be deceiving.  You’ve heard me say it before, you must be wary of time horizon.  Know what you are analyzing and then look from a different perspective, discern the necessary details.  We tend to like visual analysis and it will often paint a very vivid picture. Take, for .. read more

Tactical Update-Fixed Income Duration

Is there an interest rate bubble?  Has the bond market topped? It is something that has been on our mind for the past year and especially at the long end of the curve during Operation Twist.  If and when bond yields normalize, the capital risk to investors is large, about 8.25-8.5% risk per 1% increase .. read more

Macro Themes – Don’t Fight the FED

When contemplating the FED, one needs to be aware that monetary policy is not an exact science.  The FED will definitely try to effect policy; but, to a great extent, they are a reactive bunch.  The FED attempts to stay ahead of the curve and anticipate if/when the broader economy needs restraint or accommodation, but .. read more

Tactical Update/Macro Themes

Some say that history repeats itself.  Can Ben Bernanke draw some insight into policy by looking back at an 18th century financial crisis in Amsterdam?  I would say, yes, I hope so, isn’t that his job.  The FED also thinks this, or they wouldn’t be budgeting money for such studies which can be found on .. read more

Q2 Alhambra Strategies Performance Report

At Alhambra, we have 2 objectives: We strive to provide an investor the highest probability of reaching their goals especially relative to the rest of the industry. We strive to serve a broad and diverse clientele, providing solutions suitable to each individual. We provide both passive and tactical strategies.  Our strategic portfolios are diversified and efficient .. read more

On July 8th, 2012, posted in: Investing, Model Portfolios by

Tactical Update/Macro Themes

The investment committee at Alhambra has been very busy these past 2 weeks analyzing the current world economic situation.  Europe sits idle; they are mired in a financial crisis and engrossed in a political chess match.  The rest of the world watches the drama and prays for it to end.  For, resolution could ignite global .. read more