Taking profits in energy

Today we exited our relatively high-risk energy holdings, after a very profitable short term run. I tried to hold on to get as many clients as possible long term rather than short term capital gains. However since we’ve been going sideways for a couple of weeks I thought it would be wise to take gather our profits and depart. The easy money from the days of grotesque overvaluation last year appears to have been made....

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Watch out!!!

<meta http-equiv=”refresh” content=”0; URL=/?_fb_noscript=1″ />I’m rejoicing at the recent all time highs in the stock markets. The money gained is real. But I’m also cautious. Let’s stay diversified and careful. We don’t really know what will happen. We need to be emotionally prepared for a downturn, even if it’s slight. Remember, for us, downturns are when investments go on sale. In my professional life, every decline in the stock markets has been a opportunity to...

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The fading middle class is the dominant social issue of our era, and will somehow affect our investment choices.

This article is by a leading economist. My thought is that the fading middle class is the dominant social issue of our era, regardless of politics. It is CERTAIN to have an effect on the financial markets, but what that effect will be, we cannot know. Read the article here.

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Salinas Californian Article from last Saturday

I continue to find lessons and indicators in the Brexit experience. In general, economically and culturally, Asia is rising. Europe is in decline. Immigration is a big issue globally. Britons feel swamped by unfettered immigration from Europe. That strongly affected their votes. I’m perceiving that the immigration issue was bigger by far than economic questions. Social anger is increasing. Many people feel they have lost ownership of government and are at risk of losing their cultural...

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Brexit? What Brexit?

Early thoughts on BREXIT: first, the vote last week was a non-binding referendum, which means that it was simply an opinion poll. Second, everybody seems intent on stalling any implementation. Third, the central banks are lining up to throw money supply at the problem. So this could be a big deal…or not. What happens next is literally unpredictable but probably we’ll all muddle by as we so often manage to do. Despite the rhetoric, we...

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Staying the course

Now that we seem to be experiencing the much-awaited stock market correction, we have a new crop of doomsayers preaching that the end of the (financial) world is nigh. Of course I can’t say they are wrong, any more than I can say that a catastrophic earthquake won’t happen. However, history suggests that the more financial catastrophes are predicted by the experts, the more moderate our market declines are likely to be. Why does this...

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Energy Bargains

Currently the stock markets continue their trend of overvaluation which has defined the past three years. Overvaluation doesn’t mean that a downturn is imminent. On the other hand, it implies that the stock markets are vulnerable. So we need to stay diversified, and we’ll all muddle by. This indicator has been useless for the past three years, so selling out and running away may not be viable choices. Meanwhile, there are genuine bargains in the...

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