Dealing with Extreme Volatility

Hello Everybody, January has been a month of extreme volatility in everything including stocks, bonds, commodities and currencies.  Historic moves have occurred causing massive distortions throughout financial markets.  For instance; to deposit money at the German or Swiss central banks’, the depositor has to pay the bank.  Earnings season started with financials selling off and […]

Example of Overvalued Consumer Staples

I’ve wrote many times about certain areas of the market being expensive, such as utilities and consumer staples.  The biggest reason for the disconnect between price and value in my estimation is that the Federal Reserve’s zero-interest rate policy has forced investors and savers into high-yield stocks to generate income.  Because many utilities and consumer […]

ECB Stimulus – Rewards and Risks

Hello Everybody, Today the ECB announced its largest quantitative easing program where it will buy about $1.157 trillion in bonds by the Fall of 2016.  The plan is to combat deflationary pressures, bolster asset prices and stimulate the economy.  The ECB had to make this move but the reality is that structural reforms must be […]

Best Investment Opportunity Since 2011

“The big money is not in the buying and selling…but in the waiting.” -Charlie Munger   Hello Everybody, Some of the large banks have reported earnings for the 4th quarter of 2014 and the results were underwhelming.  Much of this had already been forecasted as the decline in interest rates and incredible volatility pressured fixed […]

Update on Recent Market Conditions – Two Research Reports

Hello Everybody, 2015 has started with tremendous volatility.  The major issues are the continued rise in the U.S. dollar, declining commodity prices and turmoil in Greece.  We are now in year 6 of a bull market so it is to be expected that it would get more difficult to make money and volatility is to […]