Category Archives: Stocks

Over the weekend, the Greek Prime Minister broke off further talks with the European Union group over restructuring its debts. The European Central Bank froze funding to Greek banks, forcing them to shut their doors for a week to prevent a widespread bank collapse in Greece. This morning, stocks in all global markets are down, albeit not much more than we sometimes experience from time to time. US interest rates ...

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The Federal Reserve Board of Governors today released minutes from its January meeting, at which it apparently discussed the fact that it might not be able to continue its current pace of bond market manipulation. In case you've forgotten...the Fed is buying up hundreds of billions of dollars of public and private bonds in order to artificially hold interest rates low. It pays for this by flooding bank vaults with ...

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Since the Major League baseball season is entering the mid-summer doldrums, we amuse ourselves every morning with the financial pages instead of the sports updates. And the play-by-play from Europe rivals any MLB division race. Will tough stalwart Angela Merkel hold off the aging southern European challengers, whose entire populations seem on the verge of a team-wide retirement at the ripe old age of 50? The story line changes daily ...

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We get calls from journalists from time to time. Here are links to a few of our thoughts, as reported by online news sources: FoxBusiness had Rick as a guest again, talking about investing in 2012. "Invest cautiously in 2012. Preserve capital." The Chicago Sun-Times interviewed Rick about higher-yielding investments. September 2011. "In his view, the stock market is priced for 'a continued and unbroken economic recovery.”'But the bond market 'is priced for a ...

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Our hearts and hopes are with Japan. The earthquake, tsunami and nuclear crisis are inflicting untold suffering on the people of a proud and noble nation. We wish them a quick and safe return to some semblance of normalcy. While our hearts think only of the human toll, with our heads we think about our clients' portfolios. We spent time over the weekend and these past few work days considering what, ...

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We are value investors. That means we tactically look for the chance to buy investments when we think they are cheaper than their true inherent value. It also means that we need to ready to act because whole asset classes can move from expensive to cheap and back again in a matter of weeks.Our outlook over the next 5-7 years is for lower than average GDP growth and a slow ...

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On Friday 4/30 the Commerce Dept. (more specifically, the Bureau of Economic Analysis, or BEA) released its first estimates of economic activity for the first quarter. The headline number was that GDP grew in the first quarter at an annual rate of 3.2%. OK...that's a number, but what does it mean? First, you need to ask whether that is a figure that adjusts for inflation or not. News accounts didn't make the ...

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Stocks are plummeting. What to do? That's not the right question...the right question is, "In past eras, what have stock returns looked like in the five years following prices like these?" We calculate the P/E ratio on stocks using Robert Shiller's method: Take the last 10 years of reported earnings on the S&P500; adjust for inflation; average those numbers. That produces a quite reliable figure for future earnings expectations -- the ...

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