Do we have the capability to eliminate booms and busts in economic activity? The answer in my judgment is no, because there is no tool to change human nature. Too often people are prone to recurring bouts of optimism and pessimism.
April 10, 2023
With most mistakes we make in life, we have no idea of what the immediate outcome will be. There’s just a feeling it will be negative. But in the investment world we often know quickly what the mistake is going to cost us. When that happens, it is unnerving because we now know that the emotional impact of losing money is 2.5x...
March 09, 2023
The last time inflation and interest rates started to rise simultaneously was 58 years ago. Then, as now, it had its genesis from too much government spending. The process was euphemistically called “Guns and Butter.” “Guns” represented the expense of the Vietnam War and “Butter” was the euphemism for the then newly introduced welfare structure...
February 08, 2023
If the “name” CMGI isn’t familiar to you, it’s probably because it’s an investment story that’s over half a century old. Yet, its relevance to FAANG and technology stocks today is remarkable. In its time, it was one of the few stocks whose trading symbol was better known than its corporate name of College Marketing Group Inc. Others similar...
January 12, 2023
As you might recall, we identify the period of 1955-1956 as the beginning of the modern investment era. Prior to that, stocks had yielded more than bonds as they were deemed inherently riskier. It was a belief that changed in the 1950s with the arrival of Jerry Tsai at Fidelity Investment Management. His mother, who had influenced him...
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