Beating Inflation

Every piece of inflation news has the power to terrify and send investors searching for ways to protect wealth.  Bonds look like a poor prospect.  As the Federal Reserve (Fed) raises interest rates, bonds will lose value simply as a matter or arithmetic.  (For an explanation see this post.)  Even if the Fed were to cease its counter-inflationary effort, … Continue reading Beating Inflation

China’s Baby Shortage and What It Means for You

China’s huge population  — 1.4 billion-plus –– often adds to American fears of Beijing’s military and economic potential.  Yes, China has a lot of people, but they’re aging fast and there is already a clear shortage of younger workers.  The country’s working-age population is set to fall in coming years, and, critically, it will face the economic burden … Continue reading China’s Baby Shortage and What It Means for You

The Last Great Inflation and What It Says About the Present One

With inflation now firmly in the headlines (and in our lives), a look back at the last experience with this menace may offer needed perspective.  Of course, history never repeats exactly, and there is no claim here that it will.  Nonetheless, a look back will provide ammunition to counter much of the nonsense appearing in the media … Continue reading The Last Great Inflation and What It Says About the Present One

What Drives This Market Rally?

People are worried.  Society seems to have degenerated into partisan bickering and, too frequently, violence.  Democrats and Republicans seem more set on thwarting each other than serving the nation.  Inflation seems to have gotten away from the Federal Reserve (Fed).  Supply chains are failing.  And yet, despite this dispiriting picture, stocks continue to rise.  Is it that market participants are unaware … Continue reading What Drives This Market Rally?

The Trouble with China’s Evergrande

Beijing has taken preliminary steps to deal with the failure of Evergrande, China’s second largest property developer.  This is not the end of the story, however, not by a long shot.  The picture too closely resembles the beginnings of America’s 2008-09 financial crisis to ignore, though thankfully it is occurring on a smaller scale.  Before it is resolved, … Continue reading The Trouble with China’s Evergrande