The vicious tumult that has riled financial markets globally reflects, at the most basic and visceral level, fear that the world is on the brink of a devastating deflationary spiral. We see two factors feeding this fear. The first is the months-long plunge in commodity prices, led by oil, which slams economies of commodity producers. Read more about The Fears of Deflationary Spiral 08-24-15
China has made big news lately, with a surprising currency move. The People’s Bank of China, which keeps reins on the valuation of the yuan, suddenly devalued it by almost 2 percent last week, the biggest one-day move on record since the PBOC began to set a reference rate for the Yuan on a daily basis. Read more about China's Surprise Currency Move and What It Means for Gold 08-17-15
Much attention is being paid to the economic race between China and America. But far less has been given to a military race, probably because America’s seeming military dominance has led to widespread complacency here.
Read more about China's Military Race With the U.S. 08-10-15
Our Growth Portfolio boasted a few good earnings reports last week. O’Reilly Automotive (ORLY), the auto parts retailer, issued strong sales and strong earnings results for the second quarter of 2015. Store volume increased while margins grew fatter.
Read more about One Home Run; One Man on Base 08-03-15
They say the one that laughs last laughs best. We feel this timeless adage will apply to the weakest part of the market—commodities and hard assets. We believe that the losses that we experienced during the first and second quarters will be a prelude to large gains in the period ahead. We do not believe a new bull run will necessarily start in the third or fourth quarter. Read more about He Who Laughs Last... 07-27-15