PC David and Goliath

By | 2017-07-17T16:47:00+00:00 July 7th, 2017|Global Market Update|

Remember Compaq? Photo: Tiziano Garuti. Source: Wikipedia The PC maker was founded in 1982. It went from start-up to $1 billion in sales in only five years. It tripled that number in four more years, becoming the third-largest PC-maker – a leading producer of a revolutionary product. Compaq made a “luggable” computer – a PC that weighed 25 pounds or so. You could “lug” it from place to place, unlike desktops, which needed a lot more time to set up. It was one of [...]

The (Serious) French Connection

By | 2017-07-17T16:47:38+00:00 July 6th, 2017|Global Market Update|

What do you do when your boss announced plans for a layoff? Emmanuel Macron. Source: Wikipedia That’s what Emmanuel Macron did a couple days ago, in a powerful speech to both houses of the French Parliament. The assembly has 925 seats, and Macron announced plans to cut its number by a third. If the houses don’t agree, he said, he will bring his initiative to the voters directly. He also told the lawmakers that they need to legislate less, that France can’t keep up [...]

A Durable Future (Part 2)

By | 2017-07-17T16:48:08+00:00 July 5th, 2017|Global Market Update|

Do durable assets create durable returns? Jason and the Golden Fleece, c. 340 BCE. Source: Wikipedia Gold and silver are often touted as “alternative” investments. That is, their returns aren’t highly correlated with other, more typical, investments. So they have the potential to diversify an investment portfolio while providing return in their own right. Gold and silver served as a monetary standard for millennia. Are they useful investments? It’s hard to evaluate the long-term returns of a monetary base. The price of gold was [...]

A Durable Future (Part 1)

By | 2017-07-17T16:48:42+00:00 July 3rd, 2017|Global Market Update -- A Durable Future (Part 1)|

Do durable assets make sense as investments? Gold Roman Aureus. Source: Wikipedia Some things have been around a long time: silver and gold were currencies and a store of value for millennia; fine jewelry has always been a sign of status; and housing and land are always in demand—everyone has to live and world somewhere. But do they make sense in an investment portfolio? A little perspective is important. People get very emotional about real investments. We’re naturally attached to our homes. And how [...]