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Archives for June 2019

U.S. Cyber Attack on Iran was Real, Now What?

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In terms of cyber security, the cyber-attack on Iran by the United States last week opens the door for reciprocity. Will it be what the Pentagon refers to as a cyber Pearl Harbor? Or will it be smaller one-off cyber-attacks? America’s recent actions were measured and non-violent, but may have increased the risk of cyber-counter-attacks on the United States, whether it be an attack on the power-grid or banking system or something else. In a recent article in Reuters, “State Cyber-Attack Poses Big Danger for UK Banks- Bank of England,” David Milliken writes: “A state-backed cyber-attack … [Read more...]

Does Solar + Storage = a Clean Power Future?

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In Nevada, plans are being made for a 475-megawatt solar array with a 540 megawatt-hour battery system. The plan to build the massive installation north of Las Vegas is the largest ever for Nevada. Brian Eckhouse reports for Bloomberg: Clean-power companies are racing to develop solar projects with batteries capable of providing grids with power after sundown. A key reason is more and more states -- including Nevada -- have committed to ban fossil fuels from power generation over the next several decades, but they’ll need more than intermittent solar and wind power to do it. Solar … [Read more...]

Is the World’s Largest Money Manager Pushing You into an Annuity?

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I love the idea of maxing out your 401(k) until retirement because old school pensions are hard to come by. But turning your 401(k) into an annuity at retirement is a fool's errand. You’re faced with nosebleed inducing fees and limited access to your money while the insurance companies bank on your early demise. Not exactly a healthy relationship. It’s concerning that BlackRock, the world's largest money manager, is pushing for 401(k) annuities to grow its assets at the price of those who cannot afford to lose them and deserve better. Dawn Lim reports on the troubling development at … [Read more...]

Does that Local Business Google Found for You Even Exist?

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Tech solutions have made many aspects of life easier, but sometimes that ease of use also leaves tech open to exploitation. Google Maps is facing a problem in which some companies showing up on its maps don't exist at all, and other exist purely to perpetrate fraud. At The Wall Street Journal, Katherine Bindley discusses fake listings: Some fake business listings might just be a popular search term or phrase. The address might be occupied by an entirely different company, or it might not exist at all. The phone number might route you to a marketing firm, known as a lead-generation business, … [Read more...]

LVMH Expands its Reach in Hospitality

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Luxury conglomerate LVMH has expanded its hospitality business by beating numerous other bidders to acquire the high-end hotel owner and operator Belmond Ltd. Craig Karmin reports in MarketWatch: The deal is the latest sign that luxury travel is booming after an extended downturn, when many leisure travelers and businesses shunned paying up for high-end accommodations. The hospitality company has full or partial stakes in virtually all of its 36 hotels, making it one of the last hotel operators to own most of the properties its manages. The hotels include Cipriani in Venice, the Grand … [Read more...]

You Have Two Jobs to Do in Record Breaking Markets

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The S&P 500 500 index closed at a record high yesterday, and could do so again today. Back in June of 2004 I was telling readers about how to position their portfolios when stock prices rise well above trend. I told them then that they had two jobs in preparing for such lofty stock prices. I wrote: So what is your plan during periods when stock prices rise well above trend? You have two jobs. First, be sure your exposure to equities does not exceed what, for you, is a conservative and appropriate level. Second, place more emphasis than normal on dividends. Look to maximize yield. And by … [Read more...]

Bigger Funds Are not always Better Funds

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In the low rate environment that has followed the financial crisis, big institutional investors have looked to alternative investments like private equity to generate returns large enough to fund promised payouts. The problem is, that once a fund gets big enough, the number of options it has for meaningful investment becomes limited. Dick Young explained this phenomenon in his popular post on the Crisis at Vanguard. Now, after plaguing the largest mutual funds for years, the problem of getting too big is hitting private equity funds. Miriam Gottfried reports at The Wall Street Journal: The … [Read more...]

American Gun Owners Are Afraid of 2020: Gun Stocks are Rising

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Nearly all the Democrats running have expressed their desire to impose draconian gun control measures on Americans. As the threats to Americans' gun rights in 2020 become clearer, many Americans are taking my advice to get their guns and their training now. The number of background checks rose in May compared to the year before, meaning more Americans were out attempting to buy firearms. Americans' firearms buying habits are an indicator of their perception of political risk that I use as a part of my monthly RAGE Gauge computation. Another group paying attention to firearms purchases … [Read more...]

Can You Bank on the Fed?

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There’s a saying in finance that you shouldn’t fight the Fed. What that means generally, is that if the Fed is encouraging riskier or less risky behavior with its policies, you should go along. But what happens when the Fed is giving mixed policy signals? The Fed increased rates as recently as December 20, and was discussing further hikes even later. Now, in June markets see the Federal Open Market Committee signaling two possible rate cuts in 2019. That’s a neck snapping change of course. Such turnabouts aren’t new for the Fed though. Back in April 1995 I wrote: In recent testimony to … [Read more...]