Monthly Archives: October 2007

How Powerful or Wise is the Federal Reserve?

This post will be a little controversial. I believe that most investors over- or under-estimate the Fed. There are two ways to mis-estimate the Fed: power and wisdom. With respect to power, the most common errors are to overestimate the Fed in the short run, and underestimate them in the intermediate run. With respect to […]

Second Video on the Federal Reserve

Here’s my second video from TheStreet.com on the Federal Reserve.  This one is on where to invest from an equity standpoint.  There are two areas to look at.  Companies that benefit from: Lower borrowing rates Higher inflation In the first category are healthy financials, and companies with the flexibility to borrow short-tern and buy back […]

Eight Notes on Insurance, Economics, and Value Investing

Doug Kass over at RealMoney made the following comment: “The next shoe to drop will be the failure of a public homebuilder and a private mortgage insurer. The latter concerns me more than the former, as the markets are not aware of the economic implications of my view.”  An interesting comment to be sure.  Unlike […]

October 2007 Portfolio Reshaping

The reshaping file can be found here. In order to stay in compliance with the Bloomberg data license, I only include numeric fields that I have calculated. My ranking method ranks the companies in my portfolio, and all replacement candidates by several variables: Relative Strength (lower is better, double weight) Trailing P/E This year’s P/E […]