“Frankly, I view the present course of monetary policy as reckless—not because it threatens inflation (which I don’t think it will for several years), but because it diverts scarce capital away from productive investment and toward speculative activities.” -JOHN HUSSMAN, highly regarded money manager. Special Message: Due… Read More

“You can always count on Americans to do the right thing—once they’ve tried everything else.” -WINSTON CHURCHILL Special message: Several past EVAs have described the investment process popularly known as the “carry trade.” As a refresher, this involves hedge funds, propriety trading desks of large… Read More

“The great traders that I’ve known would joke about how their emotions would push them to do the wrong thing.  Admitting that part of your brain is working against you is not a sign of weakness—it’s the first step towards really doing well in financial markets.” -TERRY… Read More

“If you are not confused about the economy, you don’t understand it very well.”  -CHARLIE MUNGER, Warren Buffett’s sidekick at this year’s Berkshire Hathaway shareholders meeting. POINTS TO PONDER 1.  The most recent addition to the growing list of… Read More

“Just because a reversal of something unsustainable hasn’t happened yet, doesn’t mean it won’t.” -SUPER INVESTOR, SETH KLARMAN There they go again! Don’t get me wrong—I’m a regular reader and avid admirer of The Economist.  It has a uniquely global perspective but whoever… Read More

“I worry about the effects on the long-run stability of our financial system if the Fed attempts to substitute its judgment for those of the market.  Such a regime would only increase the unhealthy tendency of investors to pay more attention to policymakers’ attitudes than to the economic… Read More

“Inflation is a more fundamental danger than speculative investment.  Some countries seem to be in the unusual situation where they are trying to create inflation. They will come to regret that.”  -PAUL VOLCKER, FORMER FED CHAIRMAN, IN A RECENT INTERVIEW POINTS TO PONDER… Read More

“After a large number of snowflakes accumulate, a snow cap builds on a mountain.  At some point, a single additional snowflake creates an avalanche.”  -STEPHANE DEO, GLOBAL HEAD OF ASSET ALLOCATION AT UBS, REFERRING TO THE LATEST EUROPEAN BANKING CRISIS A desirable divorce and a… Read More

“Where is the wisdom we have lost in knowledge and where is the knowledge we have lost in information.”  -T. S. ELIOT Let there be hope. Hope is one of the simplest yet most comforting words in the English language, at… Read More

“Reality is that which, when you stop believing in it, doesn’t go away.” -PHILIP K. DICK, AMERICAN NOVELIST (BLADE RUNNER, TOTAL RECALL, MINORITY REPORT) POINTS TO PONDER Send your checks or money orders now. Stocks are not alone in climbing lofty peaks lately.  Last week,… Read More