Insights on markets, emergent trends, history, innovation, risk management, global economics, strategy, policy, and other topics that catch our attention. Inspired by ongoing research, conversations and events. Written and edited by Osbon Capital Management and published every Thursday morning.
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Too much time is spent talking about price. Fundamentals are ultimately what drive equity prices higher over time. To say this another way, a company’s stock price can’t continue to rise unless it continues to be successful. The famous quote by Warren Buffett is, “In the short run, the market is a voting machine, but in the long run (...)
Wall Street gets a bad rap
It’s easy to blame the monolithic brands of Wall Street for selling us products poorly suited to our needs, or charging fees that empty our pockets to fill their own. It’s easy to blame them for enticing us with hot stock tips, slick hedge funds, exclusive private equity issues, and once-in-a-lifetime IPOs, none of which may be right for us….
The long, high road for US stocks
How far for how long? It’s been a great year for US stocks, with indexes broadly up 25 percent or more. As the Dow hovers around 16,000, some pundits proclaim “it can’t go up any farther” or “sell everything now!” Are they right? Let’s take a fact-based look. The long, high road We all know that US stocks have gone…
Inflation. Is it CPI or MyPI?
It’s easy to think of inflation as financial weather – something we must endure and can’t control. While it’s true we can’t control the prices that grocers, automakers and landlords charge, we can, and should, control what we spend. We’re all familiar with the Consumer Price Index, or CPI. It tracks the cost of groceries, rent, utilities and other goods…
Bitcoin… There, I said it.
Bitcoin: a currency wrapped in a riddle We don’t expect interest in Bitcoin to wane anytime soon. With a future price that could go to $20,000 or $0, it’s the ultimate speculative vehicle. It might even be the perfect holiday gift for the person who has everything and might be happy with a little bit of nothing. Any discussion of…
Look out. Here come the individuals.
This week’s article is written by guest author, Steve Mott. Steve is a long time editor for Osbon on the Money. Individual investors are pouring money into the stock market again. It’s been a long wait. Many bailed out during the financial crisis at its worst, and have been waiting for it to be “safe” to invest again. Now with…
The People of Plenty
The People of Plenty Is there anything more delicious than snooping on the financial lives of the super-rich? You can do it by looking here at the aggregate tax returns of the 400 top earners in the United States, sometimes called the Fortunate 400. It’s an interesting glimpse into a world few can ever experience firsthand. Average annual income of…
Tortoise 2, Hare 0
Tortoise 2, Hare O Many investors feel like you can’t beat Vanguard. Bond King Bill Gross of Pimco may agree. Especially after losing his second big title to the index juggernaut. What happened? Ouch, again As the recent Bloomberg title read, Gross Loses World’s Largest Mutual Fund Title to Vanguard. Vanguard’s Total Stock Market Fund is now larger than Pimco’s Total…
Too Big to Jail?
Nobody’s too happy with the big banks these days. The public distrusts them and the regulators have been levying hefty fines for misdeeds before, during and after the financial crisis. The fines are big, but who’s really paying the price? How does $93B in fines affect you? Fines on the six major Wall Street firms – JP Morgan, Bank of…
Liquidity reality check
How much liquidity do you need in your investment portfolio? If something changes unexpectedly and you need cash right away, can your portfolio provide it, and with what consequences? Here’s a quick look at sensible liquidity planning. Two definitions first Liquidity is defined as the ability to withdraw money quickly (one day to one week) with no severe adverse investment…
