Legg Mason Value Trust fund outperformed the stock market every year from 1991 to 2005. The word “legendary” would often precede the name of its manager, Bill Miller. He was legendary for building positions in companies by dollar-cost averaging down while other investors were selling. His style is described in The Wall Street Journal article “The Stock Picker’s Defeat”: Mr. Miller’s swing-for-the-fences approach makes even other value investors flinch. Christopher Davis, a friend of Mr. Miller’s and a money manager at Davis Funds, recalls discussing his investment strategy with Mr. Miller in … [Read more...]
Chanos on China
Mr. Chanos provides a sobering reminder of the dangers lurking in the world’s second largest economy. … [Read more...]
That Custom-Tailored Obama Scandal You Ordered Is Finally Here
The Daily Show With Jon Stewart Mon - Thurs 11p / 10c That Custom-Tailored Obama Scandal You Ordered Is Finally Here www.thedailyshow.com Daily Show Full Episodes Political Humor & Satire Blog The Daily Show on Facebook … [Read more...]
What We’re Reading 9-16-11
Typical U.S. Family Got Poorer During the Past 10 Years, Dennis Cauchon and Barbara Hansen, USA TODAY An Economy In Trouble, Amity Shlaes, The Wall Street Journal The 2013 Tax Cliff, The Wall Street Journal Fidelity Names New Manager for Struggling Magellan Fund, The Associated Press … [Read more...]
What We’re Reading 9-9-11
Will the IMF Stand Up to Europe? Kenneth Rogoff, Project Syndicate What Austerity? The Wall Street Journal Buffett's Latest Tax Break The Wall Street Journal Why the Stimulus Failed The Wall Street Journal Is Inflation the Answer? Raghuram Rajan, Project Syndicate … [Read more...]
Meltzer on Fed’s Evans, U.S. Labor Market, Obama
What We’re Reading 8-26-11
Measuring Inflation: The Core Is Rotten Federal Reserve Bank of St. Louis How Not to Grow an Economy The Wall Street Journal Just How Bad Is Bad? Foreign Policy Boomer Retirement: Headwinds for U.S. Equity Markets? Federal Reserve Bank of San Francisco … [Read more...]
Inflation Threatens Long Bond Yield
The Labor Department released July numbers for consumer, producer, and import price inflation this week. The results were troubling. Consumer prices increased 3.6% compared to last year, producer prices increased by 7.6%, and import prices increased by a whopping 14%. Even the Federal Reserve’s preferred measure of inflation (core consumer price inflation, known as core CPI, which is inflation minus food and fuel) came in ahead of expectations. Core CPI increased by 1.8% over the last year. The Fed’s unspoken growth target for core CPI is 2%. Because the Fed still believes inflation is … [Read more...]
A Historic Week
Even with the relatively calm day in the markets on Friday, this past week has been one of the most volatile on record. Only during the 2008 financial crisis, the 1987 stock market crash, and the Great Depression have stock prices been as volatile as they were this past week. … [Read more...]
What we’re Reading 8-12-11
Mexico Sells $1 Billion of 100-Year Bonds to Tap Into Drop in U.S. Yields Bloomberg Mistakes in Scientific Studies Surge The Wall Street Journal Business and Health-Care Reform Unfortunate Side-Effects The Economist Warren Buffett Is Wrong On Taxes The Wall Street Journal In Plain Language: Stop the Digging NFIB … [Read more...]