Archive for January, 2013

Details of the New Fiscal Deal

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Sources: NYT see also NYT

Category: Digital Media, Taxes and Policy

Long Interest Rates, 1790 to Present

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The great irony of the fiscal cliff settlement is that US borrowing rates are as cheap as they have been throughout the History of the US.

Now would be the least expensive time in most of your lifetimes to:

A) Rebuild the US infrastructure of Airports, Mass Transit, Ports, Waterways;
B) Upgrade and Secure the US Electrical grid, including making it more secure from hackers;
C) Improve the security of nuclear plants, ports, and chemical manufacturing plants;
D) Upgrade Roads, Bridges, Tunnels;
E) Improve public outdoor lighting, including “smarter” lights and traffic sensors

At some point int he future, your kids are going to ask — “Wait, you could have upgraded _______ and it only would have cost you 2.5% in borrowing costs?!?”



Shorter term rate chart after the jump

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Category: Fixed Income/Interest Rates

House passes Fiscal Cliff bill

Japan’s population continues to decline – it fell by 212k last year, the largest decline on record and the 6th consecutive annual decline. The Japanese population is expected to decline sharply in coming years, making a recovery of the country that much harder, especially as the population is also ageing materially; Taiwanese manufacturing PMI came…Read More

Category: Think Tank

Keep It Simple

Keep it simple, avoid the pitfalls Barry Ritholtz, Washington Post, January 25 2013     “A simple, albeit less than optimal, investment strategy that is easily followed trumps one that will be abandoned at the first sign of under-performance.”     That’s from Tadas Viskanta of Abnormal Returns, a “forecast free” investment blog. He was…Read More

Category: Apprenticed Investor, Investing, Rules

10 Welcome Back AM Reads

My morning reads: • The fiscal cliff deal Short-term relief, and little else (Economist) see also Ten Things You Should Know About the Cliff Deal (Bloomberg) • REITs Gained in 2012 on Economy, Housing (WSJ) • What is actually going on in Iceland (Studio Tendra) • Eight Corporate Subsidies in the Fiscal Cliff Bill, From Goldman…Read More

Category: Financial Press

2012 Year in Review

~~~ (click here if charts are not observable) ~~~   ~~~ ~~~ (click here if charts and table are not observable)  

Category: Think Tank

Planetary Nebula NGC 5189

Astronomers using NASA’s Hubble Space Telescope have photographed a festive-looking nearby planetary nebula called NGC 5189. The intricate structure of this bright gaseous nebula resembles a glass-blown holiday ornament with a glowing ribbon entwined. Source: Buzzfeed

Category: Science, Weekend

Keep Investing Simple

Its the start of the new year, and most of you have been thinking about some grandiose plan for self-improvement. Quit smoking, lose weight, clean out the basement, exercise, spend more time with family and friends, floss. May I suggest taking control of your portfolio as a worthwhile goal this year? I have been thinking…Read More

Category: Investing, Psychology, Rules, Trading

Optimal Oil Production and the World Supply of Oil

Category: Think Tank

Welcome to 2013! Day One: Rally

(Updated:  Note these now reflect the 6am Futures open — click to see updated version)     The year begins with the market in full melt up mode. The resolution, albeit temporary, has provided investors with a positive impetus to begin the year, as worst case scenarios were not realized. Cash holdings, a drag on…Read More

Category: Markets