Above is a chart from the Federal Reserve showing the US Gross Domestic Product (GDP) for the period April 1998 to April 2010 (the most recent data -- GDP data goes through multiple revision periods, so the latest data is always a few months old).Many investors may be surprised to learn that during that period, the US GDP has grown from $10.19 trillion...
Monday, September 20, 2010
Have you heard of this company? CHRW
We have stated in the past that good investment is not rocket science, which can only be practiced by the initiated few, but rather that it is very possible for the average investor -- given the proper tools, discipline, and understanding of business principles -- to be successful (see this previous post, for example).This message is contrary to much...
Wednesday, September 15, 2010
The political winds are swirling
It would be disingenuous to pretend to ignore the political winds swirling this electoral season, so we will venture to point out the investment implications that we see coming from the current election.Our view is that anything that advances the ability of private enterprise to operate freely is ultimately good for the economy. We believe (along...
Wednesday, September 08, 2010
What battles of the tech titans tell us about investment theory
The news recently provides some valuable data points which we believe confirm the arguments we have been making on these posts for the past two years concerning the "unstoppable wave" (see for instance here, here, and here).First, Dell and HP got into a ferocious bidding war over utility storage provider 3PAR, and now Oracle has announced it will...
Wednesday, September 01, 2010
Why do we want the Fed to steer the economy?
Recently at the annual economic conference in Jackson Hole, Fed Chairman Ben Bernanke said that the Fed "will do all that it can" to ensure an economic recovery, according to this Bloomberg story. The article then goes on to cite the reactions of various Wall Street economists, such as one who said, "The Fed is ready to take action as needed -- they...
