Does it make sense to take your children to Paris? In their teenage years, communication is a barrier—never mind the language—and keeping everyone happy can be a challenge. On day two of our recent trip for example, after his breakfast of waffles and chocolate croissants, my son Owen asked about our plan for the day. Our plan? Really? I told him his Mom and I were going to lunch at Joel Robuchon’s, and he and his sister would be going to Café Bonaparte with Nanna and Grandpa. “Let’s rent scooters,” he suggested. I looked up and shook my head no. “Dad,” he said, in a … [Read more...]
Archives for April 2019
Can Marriott Beat AirBNB at its Own Game?
AirBNB has completely upended the way people around the world choose vacation accommodations. Now Marriott, the world's largest hotel company is fighting back by developing expanding its own home-sharing business to the U.S. Bloomberg reports: Marriott International Inc. is expanding its home-sharing business to the United States, becoming the latest hotel operator to challenge Airbnb at its own game and blurring the distinction between home sharing and the traditional hospitality companies. Marriott, the world’s largest hotel company, plans to expand the home-sharing pilot it launched in … [Read more...]
Why Not Invest at Negative Interest Rates?
Would you pay someone else to take your money? If you answered no, good for you. If you answered yes, many investors in European government and even corporate debt feel the same. The Wall Street Journal's Daniel Kruger reports that investors have been paying European governments and even corporations like LVMH to hold their money by purchasing bonds at negative yields. Kruger writes: A growing number of investors are paying governments in Europe for the privilege of holding their bonds. The amount of negative-yielding government bonds outstanding through 2049 has risen 20% this year to … [Read more...]
“The U.S. Economy is Remarkably Resilient When Government Doesn’t Get in the Way”
"The U.S. economy is remarkably resilient when government doesn’t get in the way." These are the words of The Wall Street Journal's editorial board in describing the strong economic growth of the first quarter. The 3.2% real GDP growth surprised the financial community which had been preparing itself for far less. The board asks, "what changed?" The answer, they write, is: Well, the economic policy mix. The Trump Administration lifted the threat of new regulation and harassment of business in 2017, which liberated long-stifled animal spirits. Then came the Trump tax reform with its sharp … [Read more...]
Will the Stock Market Break Your Heart?
Stock market legend Jeremy Grantham has predicted that over the next 20 years, the stock market will break a lot of hearts. Mark Decambre of MarketWatch writes: Jeremy Grantham, an investor credited with predicting the 2000 and 2008 downturns, told CNBC on Thursday that investors should get inured to lackluster returns in the stock market for the next two decades, after a century of handsome gains. “In the last 100 years, we’re used to delivering perhaps 6%,” but the U.S. market will be delivering real returns of about 2% or 3% on average over next 20 years, the value investor and … [Read more...]
Consumer Spending Rises Most in Nine and Half Years
In March, American consumer increased their consumer spending by the fastest rate in 9.5 years. Consumer spending is the largest single component of American GDP. Accelerating growth in March consumer spending is a positive sign for GDP growth in the second quarter. Reuters' Lucia Mutikani writes: Consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 0.9 percent as households stepped up purchases of motor vehicles and spent more on healthcare. Consumer spending edged up 0.1 percent in February. Data for January was revised up to show consumer spending … [Read more...]
The Less You Spin, The More You Win
Making fewer, more focused decisions with your portfolio is a vastly superior strategy when compared to ill-considered rapid fire trading in and out of stocks. In July of 1997, I wrote about the benefits of a minimalist approach in life. The moral of the story being, the less you spin, the more you win. Here’s what I wrote then: MONK!... That’s it. Four letters say it all. Thelonious Sphere Monk died on 17 February 1982, over 15 years ago. Still today, when the name Monk comes up in Jazz circles, no explanation is needed. From his early days in the San Juan Hill West 60s section of New … [Read more...]
A Record Breaking Stock-Market
While I was speaking with clients this morning, we reviewed the current stock market and what may lie ahead. We talked about the record start to the year, with the S&P 500 on track for the best first four-months in more than three decades. We also talked about the bond side of their portfolio, and the role it plays. To me, this feels like what the late-great Richard Russell would refer to as the third phase in the bull market. The first is the low-hanging fruit, then the moderate advance—both climbing a wall of worry—into the “we can’t afford to miss the boat” third phase, when … [Read more...]
Is Amazon’s Alexa Service Private Enough?
After it was revealed that teams of Amazon reviewers listen to bits of actual audio captured by Alexa enabled devices to help train the systems voice recognition, some owners were scared. Now it has been revealed that not only do Amazon's teams listen to users' conversations, but they also have access to their home addresses in some cases. The revelation brings about new and even more concerning privacy issues that must be addressed. Bloomberg reports on the finding: An Amazon.com Inc. team auditing Alexa users’ commands has access to location data and can, in some cases, easily find a … [Read more...]
How Many “Retirees” Will Keep Working?: Paying Their Kids’ Bills
Across America, parents are spending their retirement savings to pay their children's bills. Student loans, insurance, credit cards, and healthcare costs are just some of the bills Americans are paying for their adult children. The extra burden is forcing parents to reduce their savings each month, or even dip into their nest eggs. Megan Cerullo reports at CBS News: Half of American parents have cut back on their retirement savings to help pay their children's bills, a Bankrate.com study shows. Parents are putting their kids' car insurance, cell phone bills, credit card debt and health … [Read more...]
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