Money and Finance
- Links
Peter Bernstein on risk (video) [H/T The Big Picture] (LINK) Related book: Against the Gods: The Remarkable Story of RiskSafal Niveshak: How to Be Happy and Get Rich (some lessons from a re-reading of Poor Charlie’s Almanack) (LINK) Nathaniel...
- Links
A large excerpt of the Boyles interview with Value Investor Confidential, minus the 3 stock ideas we discussed, on ValueWalk (LINK) Sanjay Bakshi: Reply to a Mail from a Friend on Valuation (LINK) A Dozen Things learned from Stanley Druckenmiller About...
- Hussman Weekly Market Comment: Margins, Multiples, And The Iron Law Of Valuation
Link to: Margins, Multiples, and the Iron Law of ValuationThe equity market remains valued at nearly double its historical norms on reliable measures of valuation (though numerous unreliablealternatives can be sought if one seeks comfort rather than reliability)....
- Bridgewater On The Fed's Dilemma
Via Zero Hedge: In the old days central banks moved interest rates to run monetary policy. By watching the flows, we could see how lowering interest rates stimulated the economy by 1) reducing debt service burdens which improved cash flows and spending,...
- Hussman Weekly Market Comment: The Recognition Window
Over the course of the market cycle, one of the primary areas of risk for stocks (and conversely, one of the best periods for Treasury bonds) is typically the "recognition window" where economic activity begins to deviate from the upward trend that is...
Money and Finance
East Coast Asset Management's Q3 Letter
Found via Market Folly.
Valuation is the primary driver that informs our investment strategy. Over time the market is meritocratic and rewards investors when they have purchased a stream of future cash flows at a discount. Conversely, the market will tend to punish market participants who have overpaid. Every investment has an expected rate of return from its quoted price over a given time horizon, it is our primary objective to determine what that expected return is and allocate capital accordingly.
Since early 2009, there has been a secondary driver informing our investment strategy – the developed world’s central bank monetary policy. As noted in earlier letters, central banks have three exit strategies to mitigate their debt burdens: increase taxes, reduce spending, and print money. We expect them to employ a combination of all three strategies but history shows that the printing of money will be the most politically and economically viable. These actions potentially have critical implications for accumulated wealth, future interest rates, and inflation.
- Links
Peter Bernstein on risk (video) [H/T The Big Picture] (LINK) Related book: Against the Gods: The Remarkable Story of RiskSafal Niveshak: How to Be Happy and Get Rich (some lessons from a re-reading of Poor Charlie’s Almanack) (LINK) Nathaniel...
- Links
A large excerpt of the Boyles interview with Value Investor Confidential, minus the 3 stock ideas we discussed, on ValueWalk (LINK) Sanjay Bakshi: Reply to a Mail from a Friend on Valuation (LINK) A Dozen Things learned from Stanley Druckenmiller About...
- Hussman Weekly Market Comment: Margins, Multiples, And The Iron Law Of Valuation
Link to: Margins, Multiples, and the Iron Law of ValuationThe equity market remains valued at nearly double its historical norms on reliable measures of valuation (though numerous unreliablealternatives can be sought if one seeks comfort rather than reliability)....
- Bridgewater On The Fed's Dilemma
Via Zero Hedge: In the old days central banks moved interest rates to run monetary policy. By watching the flows, we could see how lowering interest rates stimulated the economy by 1) reducing debt service burdens which improved cash flows and spending,...
- Hussman Weekly Market Comment: The Recognition Window
Over the course of the market cycle, one of the primary areas of risk for stocks (and conversely, one of the best periods for Treasury bonds) is typically the "recognition window" where economic activity begins to deviate from the upward trend that is...