Piglet’s Investment Advice

By | 2017-10-05T11:27:35+00:00 October 5th, 2017|Global Market Update|

It can be hard to sit still. Photo: Victor Hancek. Source: Pixabay. Every few years, someone compiles some of Winnie-the-Pooh’s life lessons into a small book. In one of these, Pooh’s Little Instruction Book, Piglet remarks, "Don’t underestimate the value of Doing Nothing." Investors should heed this advice. Of the many temptations in investing, the temptation to act too soon is among the worst. If something unexpected happens, people want to know what you are doing about it – as if doing something will [...]

The Signal and the Noise (Part 3)

By | 2017-07-17T12:21:17+00:00 June 14th, 2017|Global Market Update|

How can we stay focused? Public Domain. Source: Wikipedia We live in a distracting world. Email, Facebook, Twitter—they all cry out for attention. And it doesn’t help that our phones and tablets and computers beep and vibrate and flash at us with every new stimulus. Since companies like Google and Facebook make their living off advertising, they find ever more innovative ways to get ever more relevant advertising right in front of our noses, where we can’t ignore it. But investing is a long-term [...]

The Challenge of Patience

By | 2017-07-17T12:21:18+00:00 May 25th, 2017|Global Market Update|

We live in an impatient world. Photo: Mariordo. Source: Wikipedia After running our phones down to 1%, we plug them in and expect them to be fully charged in a few minutes. We get frustrated when a webpage takes longer than three seconds to load. We would rather use the microwave than wait for the oven to pre-heat. And if youre going too slow in the left lane well were probably not friends any more. Our culture lionizes speed: the instant celebrity, fast cars [...]

Sustainably Stronger

By | 2017-07-17T12:21:36+00:00 December 5th, 2016|Global Market Update|

What makes some businesses stronger than others? Photo source: Morguefile Business analysts look for “moats”—competitive advantages that one company has over another, even when they’re in the same industry. Like the way brand-loyalty supports iconic consumer companies like Coke or Colgate. But those kinds of moats are rare. Usually, a smart product or business idea gets copied and commoditized. Those won’t give you a sustainable advantage. But there are some things that the competition isn’t always willing to do. Strategies or habits that—once adopted—make [...]

The Compleat Investor

By | 2017-07-17T12:22:40+00:00 August 10th, 2015|Global Market Update|

Is investing an art or a science? Woodcut by Louis John Rhead. Source: Wikepedia In 1653 Izaak Walton published “The Compleat Angler,” a short book on fishing. In this little treatise he compares angling to mathematics – something that can never be fully learned. There’s always a new approach or a new location or some novel piece of equipment. “But he that hopes to be a good angler,” Walton continues, “must not only bring an inquiring, searching, observing wit, but he must bring a [...]

Triple Crown Lessons

By | 2017-07-17T12:22:45+00:00 June 8th, 2015|Global Market Update|

Can investors learn anything from the Triple Crown? Photo: Peter Wright. Source: Pixabay American Pharoah’s win on Saturday at the Belmont Stakes makes him the first Triple Crown winner since Affirmed earned the honor in 1978, and the twelfth in history. He’s also only the fourth Crown winner in over 65 years. It’s a hard to win all three races—the Kentucky Derby, the Preakness, and the Belmont Stakes. The races are quite different—different track lengths, different field sizes. Most horses who race at Belmont [...]

Patiently Impatient

By | 2017-07-17T12:23:01+00:00 March 18th, 2015|Global Market Update|

Why does the Fed talk so much? Source: Wordsmithing Ink Today the Fed statement will tell us that they don’t need to be patient anymore. Then Janet Yellen will give us a press conference where she’ll tell us she can be patient. We’ve gotten to the point where Fed members are telegraphing the deletion of a two-syllable adjective in their 529-word statement. What’s next: literary analysis and source-criticism? I can see it now: “Governor Brainard assented to the policy—her experience of economic stagnation in [...]