Economy Killers? | June 11, 2022

Economy Killers? The CPI report for May was released on Friday and it showed that headline inflation rose 8.6% from May of last year, compared with 8.3% in April. Core inflation, that is, excluding food and energy, rose at 6.0% from last year, compared with 6.2% in April. This was a little higher than expectations […]
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Trees Don’t Grow to the Sky | April 23, 2022

Trees Don’t Grow to the Sky Netflix was down almost 40% this week as paid subscribers declined Q-to-Q for the first time It wasn’t hard to see this coming, although it was very difficult to time precisely The larger a company becomes, the harder it is to maintain rapid growth But Wall Street doesn’t change; […]
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CPI Hits 7.5% : What it Means to Us… | February 12, 2022

CPI Hits 7.5% – What It Means to Us… Headline CPI for January surprised on the upside registering 7.5% vs. expectations of 7.3%. What makes it more of a surprise is that the day before, the ‘whisper number’ was that CPI would come in below expectations. The cause of the higher number is a scheduled […]
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Embracing Risk | January 29, 2022

Embracing Risk After operating in an environment where risks were clearly backstopped by the Federal Reserve. For investors, the world we have known for at least the last 13 years was on course for a fundamental change. The message that investors should be hearing loud and clear is that that there are risks that can’t […]
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Can Inflation Pop an Over-Inflated Stock Market? | October 2, 2021

Can Inflation Pop an Over-Inflated Stock Market? “By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” – John Maynard Keynes Over the last 20 years, an era known for low inflation, the CPI Index has nonetheless managed to increase about 53%. That is, […]
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Back to the Future | May 15, 2021

Back to the Future Inflation is an enemy we have not seen for a long time. Housing inflation can be particularly harmful because housing is about 17% of GDP. Building costs are rising rapidly. Existing home prices are rising rapidly. Unless incomes rise rapidly too, we are headed for a fall. Last week we discussed […]
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