The Revenge of the Long-Term Cycle: Portfolio Enhancement
In late 1999/early 2000, the excitement of the internet and the dot-com exuberance attracted capital away from investments that require a medium to long-term perspective. The result was that supplies dropped while demand was rising. Welcome to the revenge of...Dollar Trajectory and Geopolitical Tensions: The New Thucydides Route
The dollar has been getting stronger at a time when the Chinese have started to price oil in renminbi. In simple statecraft language, such action by the Chinese could just be perceived as unacceptable at a time when the US trade deficit with China stands at such high...Market Isosthenia in a World of Etatism: The Triumph of Illiberalism
We live by appearances and as we pretend that all things are getting better and that debts do not matter we are becoming villains perpetuating a culture of Pyrrhonism[1] where isostheneia (a situation of equal strength) implants and imputes in us a mentality of...Leverage, Valuations, and Earnings: Algorithmic Complexities, Monetary Gamesmanship, and Capital Protection
This year’s market gyrations should be viewed under the microscope of leverage. When we do that as the first figure shows below, then we can possibly start comprehending that in an environment of rising volatility, political instability, and geopolitical tensions,...Sector Focus: Industrials
This week we continue our review of the different sectors within the S&P and in the commentary below we discuss the industrial sector. Overall, the industrial sector globally is healthy and growing at a moderate pace. We will look at this a bit more closely, and...Sign Up for Our Publications
