More Conflicted Advice From Wall Street
The venerable Goldman Sachs is pounding the table for another round of quantitative easing (QE)—see here. The bank thinks more QE is necessary because the recent slowdown in economic activity is more than a temporary phenomenon. While the economy may be weakening, the efficacy of such a remedy is suspect.... Read the full story
More Trouble in the PIIGS Pen
Despite the best efforts of European policy makers, the CDS of the Euro-area’s PIIGS countries continue to signal severe stress. Ireland is the latest country to come under pressure from financial markets. Irish CDS have recently reached a new high. The market is anticipating that a default may be... Read the full story
A Risk Worth Taking
In today’s environment of low interest rates, there are few places to turn to add yield to your portfolio. Sure, you can tie up your money in 30-year Treasury bonds to lock in a 3.70% yield, but you will take it in the neck when interest rates rise. A 1% increase in interest rates will result in a... Read the full story
You, Me and WB: Warren Buffett’s Most Important Advice
Becky and I refinanced our house this week, locking in a 15-year rate. This should be great news, since we will be paying less interest over the life of the loan by retiring the 30-year, and our monthly payment is close to what it was. Yet, somehow, it doesn’t feel like a great move, especially after... Read the full story
Japan’s Lost Decade
Japan’s ‘Lost Decade’ Wins Fresh Attention – James Mackintosh, Financial Times “The 1990s were certainly bad for Japan. Gross domestic product rose at half the rate of slow-growing France and a third that of the US. The Nikkei 225 index halved from its peak above 36,000…On paper, the 2000s... Read the full story
Gold Nears All Time High
Up 14% YTD, gold is once again on the verge of hitting another all-time high. Read More →
