Category Archives: Investing

Finance Is a Language

Posted on March 27, 2019 by

He walked quietly into the lecture room, tall, thin and pale. His suit hung loosely off his frame. He spoke softly: “This is 15.439, Problems in Finance. There is a list of 50 problems for this course. If we do … Continue reading →

Posted in Asset Allocation, Bonds, Economics, Finance, Investing | 2 Comments

Hitting ‘Em Where They Ain’t

Posted on March 19, 2019 by

 “Keep your eye on the ball and hit ‘em where they ain’t”                                                          … Continue reading →

Posted in Asset Allocation, Bonds, Currency, Equities, Investing | Tagged , , , , | Leave a comment

Portfolio Management: Cooking With Hamburger Helper

Posted on March 7, 2019 by

Betty Crocker introduced Hamburger Helper in 1971. You took chopped meat and mixed it with what, in essence, was filler to complete the meal. Much of active management works the same way.
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Posted in Equities, Investing, Volatility | Tagged , , | 1 Comment

Diversify When the Upside Is Limited

Posted on February 12, 2019 by

While having lunch with a client recently, I asked about his attitude towards risk.  His half-joking response was that he would like high returns with no risk. I’ve heard similar sentiments echoed many times down the years. We all want … Continue reading →

Posted in Credit, High Yield, Investing | Tagged , , , | Leave a comment

Baseball and Stocks: Games of Failure

Posted on January 28, 2019 by

Remember that the best hitter in baseball this year will fail 65 percent of the time. — George Will Mookie Betts hit .346 in 2018, failing 65.4% of the time.  Mr. Betts reached base more often than his batting average … Continue reading →

Posted in Equities, Investing | Tagged , , | 9 Comments

Markets Fluctuate

Posted on October 18, 2018 by

“Markets fluctuate.” That was the entire comment by Ace Greenberg, the CEO of Bear Stearns, in a special issue of Institutional Investor magazine dedicated to opinions from the great and the good regarding the causes and consequences of October 1987’s … Continue reading →

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Incentives Matter

Posted on August 8, 2018 by

We’ve had a Toyota RAV4 for over eight years now. It’s been great because it’s reliable and can hold a ton of stuff with the seats down. However, every once in a while we receive a recall notice from Toyota, … Continue reading →

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Home Is For Your Heart, Not Your Portfolio

Posted on August 2, 2018 by

A number of years ago I took over a portfolio that held corporate bonds from both developed and emerging markets. As I looked through the holdings a name popped out at me, Ipiranga. I turned to my credit analyst and … Continue reading →

Posted in Credit, Emerging Markets, Equities, Investing, Market Cycles | Tagged , , , | Leave a comment

Bonds: Is a Massive Selloff in Order?

Posted on June 30, 2017 by

The other day there was a video clip in my Twitter feed from a strategist who stated on CNBC that rates were going much higher in the second half of this year. He went on to say that those who … Continue reading →

Posted in Central banks, Investing, Market Cycles, Rates | Leave a comment

Is This Time Different?

Posted on March 30, 2016 by

I’m a cyclist.  Typically, I ride the tarmac, but in the cold my friends and I will get out our mountain or cyclocross bikes and hit the dirt roads. Those roads are sheltered, offer stunning scenery and have enough steep pitches to ensure a … Continue reading →

Posted in Cycling, Investing, Market Cycles, Trade | Tagged , , | 3 Comments