Pity Japan

I have little doubt that the most perverse aspect of orthodox economics is the idea of monetary neutrality. Taken as nothing more than an article of faith, monetary practitioners use the principle as cover to undertake drastic and blunt intrusions into markets and economies, with no guilt over having done so because they can simply .. read more

Tactical Update

Sell EZU: Buy HEDJ We have added a currency hedge to our European exposure. Dollar funding costs are rising. Eurodollars for December 2016 fell 25 basis points in one day after the March Fed meeting. Europe relies on Russia for energy. Economic sanctions against Russia would hurt Europe. The price of North Sea oil rose 2% .. read more

On March 30th, 2014, posted in: Markets, World Allocation by

Tactical Update

In today’s environment, our focus is on finding good companies and unique investing opportunities. We added one such company to the portfolio this week. The company has enviable revenue growth, strong operating margins, great returns on capital, growing cash flows and a P/E 20% below the broader market. The company also happens to have a .. read more

On November 24th, 2013, posted in: Global Opportunities, Investing, Model Portfolios by

Tactical Update

The stock market continues to show weakness. There is plenty to be concerned with: Global conflicts — Syria US foreign policy–alliances or lack there of G20 Summit this week in St. Petersburg, Russia Earnings growth Broad market equity outflows Debt ceiling and the pending debate…”We’re going to have a whale of a fight.” – House .. read more

On September 2nd, 2013, posted in: Global Opportunities by

Tactical Update

The recent weak economic trends have, to date, not equated to stock market weakness. The rise in interest rates is being, reportedly, caused by talks of tapering. Perhaps, but the negative feedback loop that can follow is the concern. As interest rates rise, the cost of funding rises. Short duration debt to fund purchase of longer .. read more

Tactical Update

Easy money, especially quantitative easing, presents unique challenges for investors. The FED has lowered the cost of credit, therefore lenders make less.  The other side of the accounting ledger is that debtors pay less.  But, the risks of lending money have not changed to justify the lower return you receive. In fact, the FED has .. read more

Tactical Update

As reported last week, we added some companies from our watch list.  The expectation is that these buys will eventually be offset with sales of companies which we don’t feel offer the upside potential. The market did not start the week strong.  It headed south and tested the 50 day technical line again; support did .. read more

On June 16th, 2013, posted in: Global Opportunities, Stocks by

Tactical Update

As we’ve been reporting, the economic data has been showing weak performance.  But, the market hasn’t seemed to mind.  QE is in high gear.  It is supporting asset prices as the over-leveraged sectors of the economy heal themselves.  The banking and household sector received bailouts and a slow healing process puts them in a better .. read more