August 1st, 2011 – Political Ramifications
The next few days we are going to see political theatre that could be greater than Shakespeare’s plays. Some have asked us not to talk about politics, but at times like this, it is politics that is driving the market lower. We believe the market will be very volatile over the next few days with […]
July 14th, 2011 – European Debt
The capital markets have shown no signs of easing up on Europe’s debt laden countries. Until recently, Italy’s headline was little more than an occasional reference as one of the “I’s” in PIIGS. This has changed in the last few weeks as the severity of the situation in Europe is reaching a point we have […]
June 30th, 2011 – Slow Train Wreck
Greece saves the world (well at least for a little while)!! Stock markets around the world were up the past few days as Greece voted for their “suicide pact” (austerity plan) that is only delaying the inevitable and in our opinion is only going to make the adjustment bigger and more disruptive when it occurs in […]
June 15th, 2011 – Debt problems
The US should be looking at Greece as an example of how NOT to fix our budget crisis. You can not solve a debt problem if there is no growth in an economy. Last year, Greece tried to fix its debt problem by implementing spending cuts and tax increases – they increased their VAT tax by 20%. History has […]
May 27th, 2011 – A "V" recovery
In just two years, the stock market is up 100% from its bottom in what will probably go down, at least for most of us, as the worst market correction of our lifetimes. The stock market has experienced a V recovery over this time and we believe the probability of a market correction to be fairly […]
May 17th, 2011 – Client feedback
In our last update, we asked you to respond to a few questions about the economy. The results were mixed. On the personal side, we almost had an even split on those that are cutting back their personal spending and those that are spending more. We also had an even split on those who believed the economy was […]
April 15th, 2011 – A bag of goods
We are all being sold a bag of goods! Unless one has been living under a rock, you are aware there is broad consensus that if nothing changes in Washington, the US government will be broke several years from now. The looming debt crisis is one of the reasons why Tea Party candidates won so […]
April 1st, 2011 – Keeping a long-term focus
Looking at the S&P levels for the month of March might suggest there wasn’t much that happened in the way of meaningful events. The broad market index closed at 1,327 at the end of February and is looking to close right around that same level this month. That analysis would fail to recognize the tremendous […]
March 15th, 2011 – Investment advice
Before talking about the markets, our hearts go out to the people of Japan. We can not fathom what they are going through. Even though Japan’s infrastructure was designed to withstand earthquakes, the magnitude of this quake and subsequent tsunami was an incredible reminder that no matter how well humans try to contain our environment, […]
February 17, 2011 – Let the games begin
Let the Games Begin!!! The political games on the Federal budget have begun. Over the next few weeks, there will be a lot of political posturing on both sides. Republicans are complaining that the budget proposed by President Obama (adding $7.2 trillion to the deficit over the next ten years) doesn’t even scratch the surface. Democrats are complaining […]