The firemen are also the arsonists; irresponsible policy from the Federal Reserve made the coronavirus crisis worse than it had to be, writes James Grant. He continues in The Wall Street Journal: It took a viral invasion to unmask the weakness of American finance. Distortion in the cost of credit is the not-so-remote cause of the raging fires at which the Federal Reserve continues to train its gushing liquidity hoses. But the firemen are also the arsonists. It was the Fed’s suppression of borrowing costs, and its predictable willingness to cut short Wall Street’s occasional selling … [Read more...]
Archives for April 2020
Dividend “Suspensions” Not Dividend Cuts Coming Fast
The liberal electronic and print media will shortly be howling – with cartoon-size bold headlines – about dividend cuts. We just began the second quarter of the year. Third-quarter earnings reports will, thanks to the lying Chinese, be breathtakingly ugly. And the media will be out in full force glomming on to disruption. Words like recession and depression will fill the media channels. Greedy and grasping stockbrokers will be out, in full-scale hyena mode, yelling, "sell, sell, sell." Serious, long-term, compound interest focused mavens will follow my lead by engaging in a quiet, … [Read more...]
What Should Harley Do Now?
Harley was Young Research’s "Stock of the Decade" in the 1990s. The shares were first recommended as a buy in May of 1992 at a price of $3.62. During the 2000s, we advised a series of buys and sells chronicled in the chart below. The chart runs through 2007 and there was only one additional buy and sell recommendation that was essentially a wash. On the sale we explained: “The dynamics of Harley’s business have changed. HOG has transitioned from a growth company to a cyclical company reliant on a consumer that may be jobless, over-indebted, and unable to obtain financing. Demand for … [Read more...]
Barter is Back: Know the True Value of Your Eggs and Soap
Coronavirus Infects Stock Market: Part XXIII Barter is back. You may be one of the Americans who has been forced to trade eggs or soap for toilet paper. But you need to know the true value of what you own. That goes for your investments as well. Olga Kharif reports at Bloomberg: Since the beginning of March, unattended folding tables have begun popping up at intersections and the end of people’s driveways, offering everyday goods like rice, a jar of jam or bread. Take what you need and leave what you can, the signs say. Barter, the trade system prevalent in the Middle Ages, is back in the … [Read more...]
Coronavirus Infects Stock Market: Part XXII
Only Trump Saw the Risk in America's Relationship with China You’ve known for some time now that for many Americans today the “American Dream” is simply that, a dream. You’ve instinctively known this. It was in your gut. If you haven’t, hopefully you’ll seek out the peace of mind and safety you deserve when the coast is clear. That may be a while. You know I’ve been a big supporter of the message Tucker Carlson’s been making on his show each night, that we need an American Dream (my words) that is open to Americans. When I was in college, globalism dominated discussions about the … [Read more...]
Working Seven Days a Week in Sunny Key West
Value, dividends, interest, and compounding have formed the foundation I have given to my investment subscribers and consulting clients since 1964. For the first time since I began following the guidance of Ben Graham back in the early 1960s, I am able today to invest in some dividend payers that would have put a smile on Ben’s face. For me and I hope for each of my longtime clients, there is much to be thankful for. There is a bright light at the end of the current long, dark tunnel. I don’t expect in my lifetime to see such values again. And I do not plan to miss one minute on the hunt … [Read more...]
The Russian Ruble Crisis
Six years ago, oil was trading at $100 per barrel and the Russian ruble was trading at 35 to the dollar. Translating that exchange rate into oligarch terms, it would have taken about 4.5 million rubles to buy one of Mercedes’ coveted G-class SUVs. Today, oil trades at about $20 per barrel and for oligarchs with 4.5 million rubles to spend on a SUV, it's time to start looking at Chevys. … [Read more...]
U.S. Intelligence Says China is Lying About its Coronavirus Numbers
According to sources in the U.S. intelligence community, China is lying about the number of cases and deaths the country has suffered from the COVID-19 coronavirus. It is easy to suspect funniness in China's COVID-19 reporting. Look for instance at the map of China's biggest cities below. There are 14 cities in China around the size of New York City, or larger. Among them, none but Wuhan come anywhere near the number of cases logged in The Big Apple. That's despite the virus reaching those cities before it came to NYC. (Quick note, the number of cases listed by each city is that of the … [Read more...]
- « Previous Page
- 1
- …
- 3
- 4
- 5