Cash and Headlines Driving the Market!

With 100% of second quarter earnings released more than a month ago, the question posed to me numerous times is what is driving the market up and down? This is a great question and in this case, I believe it is two-fold, cash and headlines. We are all thankful that the market bottomed on March.. read more →

Inflation Watch

Consumer expectations for inflation have risen in June, causing some investors and policymakers to begin worrying about inflation again. Inflation expectations have risen to 3.1%, the highest level since last fall. We continue to think these inflation concerns are premature while we remain in the “Great Recession”. Most of the recent increase in prices has been due.. read more →

What Investments Will We Make Next?

As I look back at the past four months of blog’s, there is a recurring theme that is intermixed in our comments, “The foundation is forming but not yet complete!”This week brings more uncertainties with a splash or two of good news, or should I say, not as bad of news. With layoffs continuing, but slowing.. read more →

Change – The One Constant

This week brought the long anticipated bankruptcy filing of General Motors. This century old American company was the leading automaker in the world for over 75 years, and was a long time symbol of American manufacturing and marketing prowess. “What’s good for General Motors is good for the country” was the saying from the 1950’s,.. read more →

Markets at Crossroads

The stock market has had an impressive spring rally, responding to signs of an economy on the mend. Market volatility levels have returned to normal, or at least levels that have not been seen since back in September, before the Lehman Brothers bankruptcy. It has been a wild ride since then hasn’t it? Stocks declined.. read more →

Low Inflation = Low Interest Rates

The high levels of recent government spending and resulting huge budget deficits have stirred the inflation hawks in recent months. The “talking head” investment advice on television has been touting inflation protection in the form of traditional inflation protecting investments such as TIPS bonds, Gold, Commodities, and even Real Estate Investment Trusts (REITs). Inflation, as always,.. read more →

Scarcity Breeds Clarity

Every year the founders of the search company Google write an annual founders letter to shareholders. Though it has not been around as long as Warren Buffet’s popular annual letter to Berkshire Hathaway shareholders, it is a good read for investors, reflecting the thinking of one of America’s premier technology companies. When they wrote this.. read more →

Running the Race

Long-term investment goals can often be thrown into chaos by life’s challenges. The collapse of housing prices, a crashing stock market, job loss, a divorce, or a hot stock tip that didn’t pan out, these all can create obstacles to achieving long-term investment goals. You can probably think of other obstacles specific to your situation… read more →

Realistic Expectations

Every quarter the stock market plays the “expectations game”. Stock analysts (there a lot fewer these days) make estimates for corporate earnings and the company managers try to deliver earnings results that beat the analyst’s “expectations”. If company earnings are better than “expected” the stock will go up, if they are worse, the stock usually.. read more →

Foundation Forming, Base Building

Before things can get better they have to stop getting worse. We have talked about some of the very early signs that the economy is starting to turn.We have also seen bond and credit markets improving from last fall. But as corporations have begun to report 1st quarter earnings, these reports will be mixed at.. read more →