Charlie Munger can be extremely loquacious as he is one who loves to pontificate and definitely has something to say. He also knows when to stay quiet. When he and Warren Buffett hold court at Berkshire Hathaway’s annual meeting and a question is asked of Buffett and after answering it he turns to Charlie and asks him if he has anything to add.
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I’m not one to typically advocate following the herd but in the case of the coronavirus, I am having a hard time seeing an end game that doesn’t have herd immunity as the ultimate goal. And this could take a long time and lead to a lengthier economic contraction (to put it mildly) and even more massive federal intervention through government spending and Federal Reserve support of financial markets.
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Gary Carmell
Posted in Economy, Interest Rates, Investing, News, Stock History, Uncategorized
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Most real estate investors deploy their capital in this asset class because of the income it can generate. This is very much the case for those investing with CWS. Since 1991 CWS has sold 79 properties**. Approximately half the return has come from dividends and the other half from appreciation*.
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Gary Carmell
Posted in Economy, Interest Rates, Investing, News, People, Stock Market
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The title of this blog is from the Talking Heads song Life During Wartime. Maybe I should have called it Life During Quarantine instead but we are definitely on a wartime footing. If you don’t think so then maybe these charts might help convince you as financial markets are the most real-time indicator of investor sentiment and discounting the future to ascertain how investors react to key events.
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My international travels were scheduled to come to an end yesterday. I’m writing this prior to my arrival and assuming that there will be no delays in my return. It was a packed adventure that ended in Israel after visiting Dubai, Abu Dhabi, and Zambia via Lusaka,
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We’ve talked a lot about the advent of the Renter Nation at CWS for a number of years. When the housing bubble was in full force we used to say that people were renters but they didn’t know it because they had no equity in their homes due to the very aggressive financing that was available at the time.
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Overnight, The Saudis decided to ignite a price war which was the catalyst for oil prices crashing, stock futures imploding, and bond yields going through the floor, as reported by Bloomberg, Sunday, March 8, 2020. This was on top of last weeks dramatic drop in interest rates as exemplified by the 10-year Treasury yield dropping below 0.5% for the first time and 30-day Libor collapsing to below 1%,
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Gary Carmell
Posted in Advice, Economy, Interest Rates, Investing, Trends, Uncategorized, Wealth
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“The spectacular rise in interest rates during the 1970’s and early 1980’s pushed many long-term market rates on prime credits up to levels never before approached, much less reached, in modern history. A long view, provided by this history, shows that recent peak yields were far above the highest prime long-term rates reported in the United States since 1800,
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Gary Carmell
Posted in Economy, Interest Rates, Investing, News, Stock History, Trends, Wealth
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Not surprisingly, the Fed pulled the trigger and raised short-term interest rates by 0.25% for the first time since last December. I thought I would convey what I think are the most pertinent variables to be monitoring in the wake of the Fed tightening. I’m calling this blog post “See and Wait” as I will be showing many charts and opine on some of the ramifications but we will have to wait to see how it unfolds in the real economy.
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2020 has started off with some geopolitical fireworks that have carried over to financial markets as the headline below attests.
This is another good example of why having a hedge with U.S. Treasuries (and maybe a little gold as well) can be helpful to provide a counterweight to risk assets that inevitably take a mild beating,
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