Trading, Investing, and Costs

By |2017-07-17T12:21:28+00:00March 3rd, 2017|Global Market Update|

How much does excessive trading cost? Source: At the Sugarbush ski area in Vermont, there’s a quiet, ungroomed, expert-only part of the mountain known as Castle Rock. 20 years ago, owner Les Otten wanted to “upgrade” the section with a high-speed quad. The locals protested, sporting signs and bumper stickers that read: “More Rock. Less Otten.” These days, I feel that I should be carrying a placard around the market that reads, “More Investing. Less Trading.” Excessive trading increases transaction costs and exposes [...]

Competition, Information, and Prices

By |2017-07-17T12:21:28+00:00March 2nd, 2017|Global Market Update|

What is asymmetric competition? Photo: Miguel Vieira. Source: Wikipedia Asymmetric competition is when companies are rivals but have different bases to compete from. For example, Jaguar may compete with Mercedes in the luxury auto market, but if there are no dealers that sell Jags within 100 miles of where you live, can you really say that consumers have a choice? They may be rivals, but you can’t really say that they’re competitors. The same thing happens with pharmaceuticals. A big drug company develops and [...]

French Lessons

By |2017-07-17T12:21:28+00:00March 1st, 2017|Global Market Update|

And people thought our Presidential election was wild. Source: Marine 2017 Election season in France has generated one surprise after another. The first round in their Presidential race occurs April 23rd. Currently, there are 10 contenders. Marine Le Pen – the French Nationalist candidate – is leading in the polls with 27% of the vote. If no candidate wins a majority in the first round, as seems likely, there will be a run-off vote between the two leading vote-getters on May 7th. Parliamentary elections [...]