Liquidity, or the lack of it, is what everyone seems to be talking about relative to the bond market these days. What does it mean and why should we care? Don’t we just buy and hold bonds until they mature? Not so much anymore. A security is perceived to be liquid if quantities, large and … Continued
The markets are off to a rough start this year, culminating last week with a capitulation-like sell-off that left the S&P 500 Index down 10% since January 1st. The pull-back was triggered by many of the same worries that we experienced last fall: China’s slowing growth and their overvalued currency, the Federal Reserve’s decision to … Continued
While breaking every established financial record in the movie industry, the release of “Star Wars: The Force Awakens” also brought into clear focus the bifurcated state of the movie industry. Given changes in our collective viewing preferences for entertainment, as well as changing economic forces, studios have gravitated towards the safety and security of producing … Continued
It has been almost seven years since the world’s economy and markets reached their global financial crisis lows. Since then, domestic stock and bond markets have recovered strongly but the economic cycle has been slow to progress, and the pace of growth has been disappointing relative to previous economic recoveries. In this lower-for-longer growth environment, … Continued
“Everyone has a plan until they get punched in the face.” – Mike Tyson If the markets were a boxing match, then last quarter’s pummeling would have been met with calls for the referee to intervene. Volatile commodity prices, a potential Greek default, uncertainty around tighter U.S. monetary policy, pharmaceutical and biotechnology pricing worries, geopolitical … Continued
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” – William A. Ward Before setting out on a long journey at sea, you prepare your boat for the severe weather conditions you are likely to encounter. In the course of planning your trip, you will likely also … Continued
Over the centuries, the Chinese economy has been through many transitions. Before the isolationist policies of the 17th century, the country actually enjoyed the position of being the world’s second largest economy. However, the collective decision to not participate in the industrial revolution proved to be detrimental and by the time Mao Zedong died in … Continued
The past few weeks have marked an extremely volatile time for energy prices. On August 21st, oil dipped below $40/barrel for the first time since February 2009 as a general risk-off mentality led to selling in addition to the ongoing concerns about oversupply and slowing demand, particularly out of key consumer China. Just a few … Continued
Eight centuries ago, in a muddy field near the royal fortress of Windsor Castle, the unpopular King John was forced to strike one of history’s most important bargains. A group of rebellious barons, resentful of his heavy-handed rule and even heavier taxation policy, coerced his royal seal to one of the most important documents in … Continued
“What good is the warmth of summer, without the cold of winter to give it sweetness?” – John Steinbeck Living in the Bay Area we can easily forget just how harsh winter can be. However, when economic trends began to suggest the U.S. economy was destined for another round of negative first quarter GDP, it … Continued