Investing and Analysis

Buying Stocks During Earnings Season – Or Not

The vast majority of public companies use a calendar year for their corporate financial reporting period. The Securities and Exchange Commission requires these companies to produce a 10-Q or quarterly report every three months. The first quarter of a calendar year-end reporting company would be January, February and March. Thus, the company would have 45 days from the end of ...

Read More »

How Treasury Bonds Affect Your Stock Portfolio

Modern portfolio theory loosely states that it is the composition of stocks, bonds, and cash as a class that makes a difference in returns, not a particular stock or bond.  It is whether you are in stocks or bonds as an aggregate, as opposed to owning IBM or Microsoft. We find ourselves in a current financial environment that is testing ...

Read More »

Who Will Control the Market for Rare Earth Minerals?

Whenever you have a shortage of raw materials in the world, it historically has led to war. A few generations ago, Japan attacked Pearl Harbor within months of a U.S. oil embargo. In 2010, China embargoed exports of rare earth elements to the United States. For those of us who don’t remember much of the physical sciences from school, rare ...

Read More »

Protectionism in the American Auto Industry

President Donald J. Trump didn’t wait long to act on his campaign rhetoric moments after being sworn in as the country’s 45th president of the U.S., by reiterating his intent to withdraw from the Trans-Pacific Partnership and that he will renegotiate the North American Free Trade Agreement. In an attempt to keep auto manufacturing jobs in the U.S., President Trump ...

Read More »

While Tech Stocks Drop, Bonds may be Real Problem

We’ve seen this movie before. Blockbuster Amazon, starring Jeff Bezos and his then yet to be profitable company, perhaps rescued from insolvency by the credit market. This epic saga co-stars convertible bonds, which won an academy award for financial solvency. Despite Amazon alone losing $53 billion in market value of late, FAANG’s largest loser, it is the bond market that ...

Read More »

Volatility Returns to Markets after Long Hiatus

The shoe that is volatility has dropped on a different foot in 2018. Investors had rarely seen a market like that of 2017, where returns were so abundant, and volatility was at its lowest levels in over half a century. An obscure financial tool that was reserved primarily for professional traders, has become a household name at the likes of ...

Read More »

The Financial Metamorphosis of the College Education

As is the case in any supply and demand driven market, the cost of a college education today has been driven to a point where it would seem impossible that demand for a diploma at prices in excess of $70,000 per year would continue. Flash back to circa 1980.  Tuition at some of the best private liberal arts schools was ...

Read More »

Railroads: Better Deals in Canada?

The railroad industry is sufficiently important to the US economy that it has the clout to have its own national “day” on Capitol Hill.   This year, Wednesday March 7, 2018, was “Railroad Day” on Capitol Hill.  While Railroad Day will never eclipse Mother’s Day in the national psyche, railroads are like mothers in that they can too easily be taken ...

Read More »

Can the Ten-Year Treasury Yield Be Used as a Stock Market Indicator?

With stocks soaring and bonds sliding, the relationship between equities and debt instruments is being looked at in a number of different ways. Investors are questioning whether stocks and bonds can move up at the same time, meaning bond prices are rising but yields are falling. A recent article in the Wall Street Journal featured statements from Bank of America ...

Read More »