Stock Blog

Only the best for my readers.
Inflation in China is at an 11-year high. People over there have been getting more and more upset for months over rising consumer prices. The PBC is going to have to take this inflation threat seriously, which places upward pressure on Chinese interest rates. Don't look for a return to the kind of footloose lending that drove this boom.Ken Fisher argues that this bull market is being driven by the yen carry trade. When the yen goes up, the assets it's being borrowed... [Read More]

Only the best for my readers.

• Inflation in China is at an 11-year high. People over there have been getting more and more upset for months over rising consumer prices. The PBC is going to have to take this inflation threat seriously, which places upward pressure on Chinese interest rates. Don't look for a return to the kind of footloose lending that drove this boom.
• Ken Fisher argues that this bull market is being driven by the yen carry trade. When the yen goes up, the assets it's being... [Read More]

Because of the choppy market these days, I've recently been investing somewhat differently than usual.

Ideally, I'd like to have lots of money invested in companies that I hope will offer prospective long-term returns of somewhere north of 20-25 percent per annum. I don't see any right now, but I hope that within the next two years we may see enough of a decline (or at least a sideways market while earnings rise) that I can get some money into great companies that are deeply undervalued.

But... [Read More]

It's well past midnight here in Oklahoma, and I'm having some difficulty sleeping. I've been thinking and re-thinking my positions as we go into what is likely to be an eventful week in the markets.

I suppose I could have more serious problems keeping me up. Lady Macbeth (pictured) sleepwalked because of the guilt of having the King of Scotland's blood on her hands.

I suspect that my subconscious somehow knows when I've left myself overexposed, and won't let me relax until that exposure is dealt... [Read More]

Because of the choppy market these days, I've recently been investing somewhat differently than usual.

Ideally, I'd like to have lots of money invested in companies that I hope will offer prospective long-term returns of somewhere north of 20-25 percent per annum. I don't see any right now, but I hope that within the next two years we may see enough of a decline (or at least a sideways market while earnings rise) that I can get some money into great companies that are deeply undervalued.

But... [Read More]

It's well past midnight here in Oklahoma, and I'm having some difficulty sleeping. I've been thinking and re-thinking my positions as we go into what is likely to be an eventful week in the markets.

I suppose I could have more serious problems keeping me up. Lady Macbeth (pictured) sleepwalked because of the guilt of having the King of Scotland's blood on her hands.

I suspect that my subconscious somehow knows when I've left myself overexposed, and won't let me relax until that exposure is... [Read More]

James Grant of Grant's Interest Rate Observer has a view of the current financial situation that is very similar to my own.

Grant also sees an unusual problem created by simultaneous credit and currency troubles, and believes that we are right in the middle of what he calls an "Old Testament credit crisis." Wish I'd come up with that term . . .

Check it out.

James Grant of Grant's Interest Rate Observer has a view of the current financial situation that is very similar to my own.

Grant also sees an unusual problem created by simultaneous credit and currency troubles, and believes that we are right in the middle of what he calls an "Old Testament credit crisis." Wish I'd come up with that term . . .

Check it out.

For the first time since the 1970s, the United States is facing the potential of a serious banking crisis and a serious currency crisis at the same time.

So it appears that the stopped-clock permabears may be right, at least for the time being. Let me explain . . .

The Fed's customary solution to financial problems has, of course, been to pump money into the financial system when it is under strain. This strategy worked OK in 1987, after the Asian Crisis (despite creating the tech bubble), after... [Read More]

For the first time since the 1970s, the United States is facing the potential of a serious banking crisis and a serious currency crisis at the same time.

So it appears that the stopped-clock permabears may be right, at least for the time being. Let me explain . . .

The Fed's customary solution to financial problems has, of course, been to pump money into the financial system when it is under strain. This strategy worked OK in 1987, after the Asian Crisis (despite creating the tech bubble),... [Read More]