Tuesday, October 6, 2020

Darden: Cooperation Vs. Competition -- What Do You Want In Your Mutual Fund?

 By SIMON CONSTABLE

Veteran investor Charlie Munger once quipped, “Show me the incentive, and I'll show you the outcome.” Put simply, what metrics an employer uses to determine performance pay will likely have a profound effect on the way employees behave. In turn, that impacts how companies perform. Read more here.


Photo by krakenimages on Unsplash

Monday, October 5, 2020

WSJ: Five Reasons Why Investors Might Buy Negative-Yielding Debt

 By SIMON CONSTABLE

Why would anyone want to buy a bond with a negative yield?

It’s a good question especially given that experts estimate that there are almost $16 trillion of bonds in the world that have negative yields. That’s a lot of securities that investors have purchased knowing that they’ll get back less money than they invested. It means that a one-year bond with a face value of $1,000 that yields minus 1% will leave the investor with $990 when the bond matures. Read more here.

WSJ: What Is the Output Gap?

 By SIMON CONSTABLE

Investors might start hearing a lot more about the output gap, an obscure metric Wall Street professionals historically have used to predict changes in Federal Reserve monetary policy and the potential for an increase in inflation. 

Using it, however, can be more art than science. Read more here.


Wednesday, September 30, 2020

Forbes: Recent Precious Metals Dip A Buying Opportunity

 By SIMON CONSTABLE

The recent fall in gold and silver prices could present a buying opportunity for those wishing to invest in precious metals for the medium and longer term. Read more here.

Forbes: Barclays -- ‘The End Of The City Is An Urban Myth’

 By SIMON CONSTABLE

Reports of the death of cities are much exaggerated. 

Yes, it is true that New York City and other major metropolitan areas have seen some problems lately, but overall it may be more of a media circus than reality, according to a recent research report from UK-based bank Barclays. Read more here.


Forbes: Goldman -- Democrat Sweep Would Be A Positive For Stocks

By SIMON CONSTABLE 

A sweeping victory by the Democrats in early November would be positive news for the stock market, according to a recent report from New York-based bank Goldman SachsRead more here.