Mar 6, 2015
- Graph courtesy of Bloomberg L.P.
BOND INVESTOR MADNESS? 1% is not 7%. You may be “out of the market” yet committed to effectively lose money after fees. S&P 10 Year US TIPS Index Avg Yield (SPBDU1SY)
- Graph courtesy of Bloomberg L.P.
POPULAR ENERGY INVESTMENTS? Buying last year’s winners cheaper, may not be cheap enough. Fundamental deterioration does not reverse instantly. Oil is less than ½ the price of mid 2014. The companies in this space have tremendous downside. “THE PRICE OF OIL IS ABOUT TO BLOW A HOLE IN CORPORATE ACCOUNTING”
Those about you may have lost their heads, but Sir John Templeton provided clear guidance on process: A plethora of good ideas can crowd out the weaker ones.
“All of us, whether or not we are warriors, have a cubic centimeter of chance that pops out in front of our eyes from time to time. The difference between an average man and a warrior is that the warrior is aware of this, and one of his tasks is to be alert, deliberately waiting, so that when his cubic centimeter pops out he has the necessary speed, the prowess, to pick it up.”
- Carlos Castaneda
Potential Bargains Between Now and Year End: more details here
On government… It is the highest impertinence and presumption… in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense… They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will. The Wealth Of Nations, Book II, Chapter III, p.346, para. 36. The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.