Category General Investing

Passive Investing is not a Panacea

Increases in wealth tend to strengthen the appetite for risk while losses tend to weaken it. -Richard Bernstein Like all things human-created, passive investing has it’s flaws and biases. It falls prey to the blessing and curse of human optimism. Investing in the largest companies at any given time gives insights into what we, as […]

Calm before the Storm?

The number of private equity firms has grown as the number of listed companies has shrunk. Multiples of private equity deals have grown and market multiples of listed companies have grown. Also, private equity firms have more dry powder than recent years while listed companies have leaned on share buybacks to spend their monies. What […]

Running out of steam

This morning Bill Gross posted his newest installment of his blog. In it, he claims that because rates are so low in and absolute sense, the yield curve will need to flatten less in absolute terms to be associated with past recessions. This is because so many have taken on large amounts of debt, especially […]

How to make the Bond Bear feel less scary. 

    I get it. There is an opportunity cost, on average, for owning bonds as opposed to stocks. With that comes more risk. Recently, many prominent investors have written about the end of the prolonged bond bull market where both income and capital appreciation have been ample. Does this mean they are pushing for stock […]

Gundlach’s Treasury Yield Proxy

In a Barron’s Roundtable article dated January 23rd 2017, Jeffrey Gundlach mentioned that he thinks yields are too high based one one of the metrics he follows. To gain this estimate of what direction the 10 year Treasury may move in, he watches the ratio of copper prices to gold prices.  When the article came […]

The Definition of Genius

“The definition of Genius is taking the complex and making it simple.” Albert Einstein     On the 8th anniversary of this bull market many investors are looking for reasons for it to end. Being one of the longest bull markets (if you don’t count the The Bear Market that Nobody Talks About), this is to […]

Why Invest Long-Term?

   “A short time is a long time when your mind won’t let go.” – Jack Johnson In practice, it’s hard to be a long-term investor.     Humans are emotional and flawed beings. The point of investing is to achieve emotional goals such as security, purpose and importance. In theory, investing should be easy […]