Cisco Is Using Its Balance Sheet Constructively [View article]
I guess the question is whether this is so unusual compared to what generally occurs in large companies where there are going to be situations of spouses and children of executives in adjacent industries. It does not strike me as particularly troubling.
Cisco Is Using Its Balance Sheet Constructively [View article]
I understand your point but I would say two things: 1. it is possible that there is an innocent explanation - it is not remarkable that two people in the same industry would be married and CSCO is so large that its activities touch many other companies and 2. the amount involved is immaterial to CSCO's financial performance.
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
LNG should not create a transmission/distribution system bottleneck issue. LNG plants can be operated off peak and LNG can be stored. LNG is actually used to help supply peaks in places like New England at the end of pipeline systems because it can be stored.
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
The Saudis still have significant ability to throttle back production and stabilize prices. On the other hand, they might want to temporarily lower prices so that they could really stick it to their enemies in Iran. Prices are still very dependent on developments in the Middle East. If we get an all out regional Sunni/Shiite shoot out, prices could really skyrocket. On the other hand, if we get Rafsanjani as the new President in Iran and a normalization of relations, we could have a long period of stability.
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
I don't think this is likely. CNG demand will materialize gradually and in urban areas with robust distribution systems. It is more likely that a spike in the demand for natural gas as a power plant fuel could create this kind of issue - for example, the extreme demand created by a heat spell which required lots of power plants to operate flat out for an extended period of time.
Is Lowering The Real Interest Rate The Solution For The U.S. Economy? [View article]
It would be better to engage in targeted fiscal policies designed to create jobs and get money in the hands of people who will spend it, but there is no political will to go in that direction. This is the "second best" choice. The third alternative is to do nothing, although a deflationary depression to unfold and relive the 1930's.
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
That sounds about right 32 cents is a little less than one sixth of $2 and one mcf equals roughly 8 gallons of gasoline. The higher natural gas well head price would probably have a small impact on the transmission and distribution cost of natural gas - I assume that compressors used by natural gas pipelines burn natural gas.
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
It's a reasonable question. I think that they would definitely take a hit and margins on LNG would tighten. Customers would feel less need to order LNG trucks but some might continue to order them to diversify risk and protect against an oil price spike. Of course, at lower prices various forms of petroleum production (tar sands, expensive off share products, etc.) are likely to decline over time. It is certainly a risk factor and one thing to keep an eye on.
The Problem Of The Strong Dollar: Investment Implications [View article]
I think that my concern is beginning to be played out in the markets as the dollar strengthens. We will see where this all takes us. It is of course another reason that we are unlikely to see the Fed raise interest rates for a long time.
The Problem Of The Strong Dollar: Investment Implications [View article]
A couple of big differences - 1. much, much higher interest rates in 1981 as the Fed struggled to get inflation down and 2. EM/Asia countries have much higher levels of dollar reserves and better balance sheets today (probably in reaction to the mess which occurred in the 1990's).
The Problem Of The Strong Dollar: Investment Implications [View article]
Of course this has been a big plus for Yum Brands (YUM) which is a good play on China. There were some other surprises on the trip - no General Tso's Chicken anywhere in China!! I wondered out loud whether he was a Nationalist Chinese General and they stopped making his chicken for political reasons but that is apparently not the explanation. A real mystery. And the Colonel keeps growing in China - very, very popular.
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]
It's tough to be in cash for a long time now because you forego dividend yields. I think that the market will move up gradually staying at dividend yields between 1.8 and 2.2 percent and gaining as dividends increase. A big event may be the resumption of large scale dividends by the big banks. I really have no idea when it will happen but I think it is virtually inevitable that we will see it sometime in the next 3 years.
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]
Currencies are "strong" or "weak" only in relation to other currencies. The dollar is the last man standing in a ruinous bar room brawl which has rendered everyone else dead or unconscious (just like the United States at the end of WW2). Unfortunately, in this case, I am in the camp that believes that an overstrong dollar is an absolute disaster for certain important sectors of our economy. This is another reason we are not likely to see higher interest rates for a very long time.
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]
Thank you. I really think that most "pundits" have prepackaged explanations available each day to use so that they can explain "why the market went up" or "why the market went down" with equal facility. I really don't think investors should give this stuff much weight.
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]
I am sorry if I an scaring people away. The last paragraph could not be reasonably interpreted that way. I do think that there is a danger of euphoria and a terrible potential problem in confirmation bias and investors should be aware of it. Right now, I tend to agree that dividend yields will slowly drive the market up although there will be fits and starts as the market gets ahead of itself periodically.
Cisco Is Using Its Balance Sheet Constructively [View article]
Cisco Is Using Its Balance Sheet Constructively [View article]
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
Is Lowering The Real Interest Rate The Solution For The U.S. Economy? [View article]
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
Clean Energy Fuels: The Important CNG/LNG Distinction And What It Means For Investors [View article]
The Problem Of The Strong Dollar: Investment Implications [View article]
The Problem Of The Strong Dollar: Investment Implications [View article]
The Problem Of The Strong Dollar: Investment Implications [View article]
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]
Bull Market Speed Bump #1: All News Is Good News (Confirmation Bias) [View article]