Dramatic regulatory changes and capital requirements have undeniably changed the landscape for banks.  The short-term impact has been lower profits and revamped business models.  While most market participants are shorter-term thinkers and might come to the conclusion that things have changed for the worse forever, I’d argue against that.  While certain businesses such as proprietary...Read More

The Standard & Poors GSCI gauge of 24 raw materials has jumped 21% from this years low and is now officially in bull market territory.  The rally has mostly been motivated through the terrible drought affecting crops across the United States. This increase in prices could boost inflation and crimp profits for companies dependent upon...Read More

Jefferies (JEF) is up nicely today off of a recommendation form Dick Bove of Rochdale Securities LLC.  Jefferies recent deal to help save Knight Capital Group (KCG) is a potential goldmine for Jefferies, and the mid-tier investment bank has been performing quite well in comparison with competitors.  The current valuation for Jefferies is very attractive...Read More

Whole Foods Market Inc. (WFM) continues to experience robust growth as the shift away from regular grocery stores continues.  Whole Foods is obviously on the high end while the Super Stores such as Target and Wal Mart are continuously expanding their offerings to take business from the likes of Supervalu and Kroger.  Obviously this is...Read More

Further evidence of the strength of Citigroup’s brand on a global scale is exhibited by the company being the first Western bank to issue credit cards in China without co-branding from a local financial institution.  China without a doubt offers the largest opportunity for credit card growth, and Citigroup’s participation in that growth is a...Read More

Once again Germany’s Bundesbank is jawboning against ECB bond purchases.  While I understand that it is essential for struggling economies to fix their structural problems, at this point in the game it is obvious that the ECB must actually act like a central bank is supposed to act, and address the overall funding issues of...Read More

Best Buy (BBY) founder Richard Schulze is attempting to find a management team to lead Best Buy for a potential going private transaction.  While the lack of clear strategy to compete with Amazon is extremely worrisome for shareholders (among the reasons I don’t own BBY) record low interest rates might just make a buyout of...Read More

One of Warren Buffett’s attractive 2008 preferred stock investments seems likely to be repaid soon, as Dow Chemical (DOW) awaits proceeds from a legal dispute with Kuwait.  Dow has really benefited from the acquisition of Rohn & Hass Co. which was enabled through Buffett’s capital in a stressed credit environment.  It will be difficult for...Read More

New home sales were disappointing today at a 350,000 annual rate which missed expectations for 372,000.  I can’t say I’m shocked to see these numbers as it is obvious that the economy has slowed down a bit particularly in the area of job growth.  One of the problems that led to disappointing numbers actually could...Read More

Ray Dalio from Bridgewater Associates LP is one of the best at intertwining macro and micro investing.  He argues that the “European debt crisis has been poorly managed, bringing Europe closer to a debt implosion, or a currency collapse.  Although this is extremely negative he also mentions that “a meaningful deleveraging for an extended period...Read More