Category: Economic Policy

Always Christmas, But Never Winter

While the rest of the world’s stock markets have struggled through snowy economic conditions, the US is enjoying Christmas while avoiding winter altogether.

Halloween May Be Gone, But The Zombies Are Still Here!

In our most recent newsletter, we outlined one of the biggest challenges facing the US economy going forward: the debt avalanche. And there is no better example of the massive debt increase and it’s increasing risks than “zombie” companies.

On The Margin

There is an old adage that says “correlation does not equal causation”. Just because two metrics, or trends, move in the same direction at the same time doesn’t mean that one causes the other. But while we shouldn’t assume that correlation equals causation, there are times – on the margin – when interesting correlations should cause us to look deeper. This is one of those times.

A Skip, Hop and A Jump

Living in the San Joaquin Valley – in the heart of California – has it’s perks: centralized locale, mild weather, and fresh fruit. But one thing the valley isn’t known for is clean air. Smog is a way of life here. This is why many people take short drives to the coast to get some […]

Greatly Inflated Expectations

While the broad economy has continued humming along for the last year or so, so have most people’s ‘inflated expectations’ about the direction of interest rates. Depending on how you look at the numbers, we might be in the best of times or we might be in the worst of them.

A Garbage Powered DeLorean

In 1989, the second installment of the Back to the Future trilogy came out. I still remember dreaming of owning Marty McFly’s hoverboard. Biff Tannen’s hoverboard was unsafe, obviously. And then, there was the garbage-powered DeLorean: Savings Equals Investment In my last post, we discussed the importance of saving in determining where we are in […]

Living In A Bubble

It is true that there exists a strong correlation between housing and wages: when wages go up, so do home prices; when wages stagnate, so do home prices. Or, at least, they should. Unless you are living in a bubble…

Flipping Nuts

For every 10 homes sales done in Visalia, one is a “flipper”. For those who are unfamiliar with “flipping”, I am not using it in a pejorative sense (although, as we will see, that does not mean it isn’t pejorative).

Trumped Up Market Moves

We are now two weeks past one of the most surprising election results in American political history. While there are certainly mixed feelings among various groups, everyone is asking the same important question: what does this mean for my portfolio?