Much ado has been made of the return of the Federal deficit, mostly by those who deride tax cuts. Frequently heard is the argument that deficits represent an increase in demand for credit that in turn will increase interest rates, to the detriment of economic growth. While this argument is unsubstantiated, the outlook for long-term […]

The following item was sent to us by a friend. We could not determine its author, but we found it to be a wonderful depiction of the politics surrounding any proposed cuts in Federal income tax rates. Let’s put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for

President Bush has proposed legislation that would eliminate the taxation of dividend income for individual owners of common stocks. We do not recommend that investors take any action at this point in anticipation what Congress might approve. Many aspects of the proposal have already been altered. Whatever new law survives the legislative process will very

Investors who have heeded our advice to hold gold related assets have seen the dollar price of gold rise appreciably in recent weeks. As of December 19th the price stood at $345 per ounce, a price not reached in six years. A rising chorus of voices, largely those of gold enthusiasts, is proclaiming (yet again)

Investing globally has never been easier. With the click of a mouse, an investor can access research and data on public companies from London to Bangkok, and with another, buy shares through a mutual fund, depository receipt, or directly through an international exchange. This level of information and access is unprecedented. Paradoxically though, the same

“I have but one lamp by which my feet are guided, and that is the lamp of experience. I know of no way of judging the future but by the past.”—Patrick Henry, 1775 Our recommendations are based on our observations of historical economic data. This is not to suggest that history will always repeat, but

While politicians and pundits ponder the merits of war, investors too must consider its consequences. Dire warnings, from higher oil prices to the costs of protracted U.S. involvement, are everywhere. At bottom, however, the pertinent question is whether the probability of war and its impact are discounted in the markets. Our investment approach is predicated

Corporate malfeasance has shattered investors’ confidence in corporate America. The great bull market that began in the early 1980s exacerbated a trend whereby anticipated and announced quarterly earnings were trumpeted by Wall Street above all other considerations. With only three mild recessions, earnings grew steadily, as did stock valuations. But recent corporate revelations and the

It does little good for investors to dwell on large paper losses they might currently be witnessing, and in fact wise investors can take advantage of the occasion to derive valuable insights. We can point to two important lessons. With the markets in turmoil, the mettle of investors’ is being tested, and we continue to