The debate over secular stagnation is all the rage today, but I want to throw out another potential option – the golden era of low and stable growth. If we look at the growth in the US economy it’s clear that we’re becoming a lower growth economy. But this might not be all bad because… Read More
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John Bogle presented at this year’s Grant’s Spring Conference and made the argument for indexing as the way forward for investors. You can find his presentation slides here. Jim Grant offered some push back from the “active” side which raised the question – is indexing superior to specific security selection and which is the way forward… Read More
I always say historical returns are always a better gauge of possible risks than they are of future returns investors can expect. It’s very easy to look back at past market performance and assume it would have been easy to earn those return numbers. Investors are much better off figuring out ways to earn as much of the performance from the market or fund returns going forward by reducing commissions, fees, taxes and unnecessary portfolio turnover.
The latest edition of some things that I think I am thinking about: 1) The US economy sure looks anemic. Q1 GDP is expected to come in at 1.2%. My own metrics show even lower growth possibly nearing 0.5%. But the Atlanta Fed notes that Q1 has been weak throughout the recovery: The picture below… Read More
Here’s Paul Krugman on a recent IMF report which says that government deficits don’t necessarily “crowd out” private investment: The false belief is that government deficits necessarily “crowd out” investment, so that reducing deficits should free up funds that lead to higher investment. Not so, says the IMF: when governments introduce deficit-reduction measures, investment falls… Read More
Wall Street Week with Louis Rukeyser was probably the greatest financial TV show that ever aired. It was the show that got me into investing when I was a teenager and the last financial TV show that I watched with any real dedication. So I am excited to see that Anthony Scaramucci has purchased the rights… Read More