Reconnected at last?

I’ve talked a bit recently about the disconnect between the news and what the stock markets are doing, and I even suggested yesterday that we need a 300 to 500 point drop in the DJIA to get back in sync.  Even though I called it yesterday, I know this blog isn’t that widely read (and […]

Why active investors fail

I know you’ve probably had enough of Warren Buffett by now, but I’m on page 19 of his annual letter and here’s another bit of wisdom that needs to be repeated.  In talking about stock market returns vs. expectations, and the way most pensions are funded, Buffett gives a reason why actively managed funds always fall […]

More of Buffett

On page 9 of his latest letter, Buffett talks about some mistakes he’s made.  This is where he’s at his best, mixing financial advice with humor:  Finally, I made an even worse mistake when I said “yes” to Dexter, a shoe business I bought in 1993 for $433 million in Berkshire stock (25,203 shares of A). What […]

Buffett’s Latest Letter

Warren Buffett released his annual letter to shareholders today, which talks about Berkshire Hathaway’s 2007 results.  In case you’ve never read one his his annual letters before, I encourage you to check out a few of them this weekend.  He has a knack for making things clear and easy to understand, and he’s right a […]

More disconnect…

I took a quick look at the latest business news headlines and the major stock market indexes today at 3:30 ET.  There seems to be some correlation today, but not much – especially since most analysts blamed today’s down action on a reaction to Helicoptor Ben’s statement that he expects some bank failures as a […]

Credit and equity disconnect

Here’s an article that talks about the disconnect between the credit and stock markets that I alluded to yesterday.  At some point they’ll have to come back in line – because fundamentally they’re both pricing risk.   Which way will it eventually go?  Will the credit market go up or will the stock market go down?  […]

Market disconnect

Here were the top 10 stories (listed in order) from Reuters Business News at 10:30 AM yesterday morning: Home prices plunge at record rate in 2007: S&P – 32 min ago The collapse in home prices accelerated to a record pace in the fourth quarter of 2007, with prices plunging 8.9 percent last year, according to […]

The Broken Window Fallacy Reapplied

I read this great article in two parts in an email newsletter from The Daily Reckoning Australia.  They had a link to www.mises.org where I found the entire article, and Mr. Rockwell was kind enough to give me permission to repost it here. Anyway, I think it’s well worth your time to read it.  And you […]

Lunar Eclipse

With all the clouds in the sky, it didn’t look like we would see anything from Knoxville, but just after totality started, the clouds parted and we got to see the eclipse.  Awesome!  The moon turned a really cool shade of orange and red, and it stayed that way long enough to get some decent […]

Poverty

Read this: http://www.nytimes.com/2008/02/18/opinion/18krugman.html?ref=opinion Then look at some facts and tell Mr. Krugman what you think of his article.   I think he needs to do some homework before dismissing “alleged abuses of welfare queens driving Cadillacs”. I’ve got a lot more to say about this, but it’ll have to wait. gk