Tracking the 90% Economy

The U.S. is reopening for business. Headline employment numbers on Friday, June 5 showed that 2.5 million jobs were created in May. Unemployment dropped to 13.3% in May from 14.7% in April. There was a misclassification error that could result in an adjustment 3 points higher for the most recent reading, but even that number would be significantly lower than economists’ expectations of nearly 20%.

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Could the Pandemic of 2020 Redefine “Enough”?

During the financial panic of the 2009 recession, Jack Bogle, founder of Vanguard Group and prolific author, dashed off a pithy book titled, Enough. For all the fiery zeal so characteristic of Bogle’s style, this reflectively soul-searching book subtly and obliquely confronted the intransigent problem of wealth disparity in the United States, an increasingly visible scourge that was last this acute in our nation as the roaring 1920s drew to an ignominious close.

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To Hedge or Not to Hedge

Over the course of several short months, a novel coronavirus exploded onto the global scene as the COVID-19 pandemic. Long-volatility and put-option strategies have garnered significant attention in the wake of the 2020 Q1 selloff as managers with exposure to market downside protection reported truly remarkable returns. This has reignited debate over the utility of hedging strategies.

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The High Cost of Low Interest Rates

Guest blogger, Jim Grant, is the editor of the estimable Grant’s Interest Rate Observer. Having read almost all of his books, I am among the many in admiration for both Grant, the man, and the brilliance that flows from his mighty pen. He has reciprocated…proportionately, as will be evident in our next post. For the moment, he has offered here for our readers an opinion piece recently appearing in the Wall Street Journal.

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Market Corrosion and the Catalyst of COVID-19

This post will almost certainly be out of date by the time notice of it arrives in your inbox. That’s because the current volatility in the market is extraordinary. It’s not uncommon to see a 1% swing in as little as five minutes. After quietly and systematically marching to a succession of new highs in January and through February 19, the index has slipped into a highly indecisive phase.

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