Stocks rebounded in spectacular fashion last week, the angst of the last few weeks apparently forgotten as quickly as a central banker can float a trial balloon. First there was the Bullard bounce that moved us off the lows when things were looking their grimmest and then last week we got a rumor about the ECB potentially buying corporate bonds [...]
I've mentioned several times recently that within Alhambra we often have vigorous debates about the economy and markets. I'm a big believer in the power of competition to improve outcomes whether we are talking about the macro economy or the micro debates about portfolio strategy in which we engage. The debates we have internally are a form of intellectual competition, [...]
Herb Stein was an economist that drew the unenviable task (though I don’t think he saw it as such) of being chair of the Council of Economic Advisors under Presidents Nixon and Ford. He was a man who knew imbalance up close and personal. To that end, he once quipped, “Economists are very good at saying that something cannot go [...]
Before 1950, if you asked who owned stocks, the answer was very straightforward: wealthy individuals. Ninety percent of all equities were owned by the household sector, concentrated in the wealthiest segments. Most individuals had little savings to speak of, so stocks really were a plaything of the rich. All data below is taken from the Federal Reserve’s Financial Accounts of [...]
There are a lot of potential hurdles for the markets in the coming weeks. A potential strike on Syria is foremost on the market's mind as evidenced by the rapid selloff Friday in the wake of hawkish comments by Russian President Putin. Russia and China both appear to be backing the Syrian regime while the US and France - yes, [...]
I wrote last week that investing today requires a huge dose of humility and so with that in mind, I have to admit that I've been.....well, to be kind to my ego, I'll just say I've been too cautious about the market recently. Anyone who bothers to read these weekly missives knows that I turned more cautious about the economy [...]
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