themarketswork

a common sense approach to a liberal world

Market Pricing

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I woke up this morning to the “stunning” news that Trump was only 4 points behind Hillary according to a new Washington Post-ABC News poll. As an aside the WSJ’s web page headline reads Trump trails Hillary by 11 using a different – and possibly earlier poll – go figure. Either way, I didn’t find the news all that stunning.

Allow me to explain. For the entire campaign, the media has been reporting on Trump. Digging up whatever they could. And then came the news of Trump’s comments and the entire firestorm that ensued. In my personal opinion the media ended up far more frothy and lathered about this issue than did the general public – but that’s not the direct point I will be making – although it is connected.Continue Reading

The Most Frequently Asked Question

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When people find out what I did for a living I generally ready myself for The Most Frequently Asked Question – “Do you have any stock tips” (or some variant thereof).

My answer is boring. Really boring.

My first response is a question – how much do you have saved up in liquid assets – cash, money markets, savings accounts – for emergencies. Do you have enough liquidity to pay all your bills (rent, groceries, insurance, utilities, etc.) for 6-12 months. “Yes” means we can keep talking. “No” means go save some money. Now.

Assuming the answer was yes we then move on to a spirited discussion of Index Funds. This generally meets with some disappointment.Continue Reading

Supreme Issues

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There is one over-arching issue that I’ve been almost singularly focused on.

The Supreme Court.

This institution shapes our national character more than any other – and its presence is felt far past any president’s time in office.Continue Reading

Just Because You’re Paranoid…

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Trump has declared war on the GOP, The Department of Justice and the FBI. It all seems a bit much – over the top, hysterical and shrill. Desperate? Paranoid?

I certainly think it comes across that way and its not the tactics I would advise. But then I would have advised against so very much of what he’s done.

Who goes on a podium and says the Department of Justice and the FBI are corrupt? Continue Reading

An Election Too Far?

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This has been an election characterized by low emotions. We’ve all had almost visceral reactions to the tenor (and words) of the entire process.

The 2nd debate reignited those feelings. The attacks from both candidates were like nothing we’ve ever seen before. Trump threatened to appoint a special prosecutor to go after Clinton and Hillary came right out and stated that Donald was unfit to be president. And so much more. An amazing spectacle it was.

It feels wrong, cheapened somehow. Our presidential election should be better, nobler. Continue Reading

Donald Unchained

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And, no, nothing was silent (apologies to Quentin Tarantino).

Wow. Just…wow.

Did someone get the license plate of the truck that hit Hillary?

I’m having trouble deciding if the release of Trump’s comments from 10 years ago was a terrible thing or a great thing for his campaign. I’m leaning towards the great side.Continue Reading

Little White Lies

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Do you remember when it was political suicide for a presidential candidate to admit he had smoked marijuana…even once? I do. We all knew deep down it was a lie but it didn’t really matter. Because our presidential candidates were supposed to be better than us, principled, educated, refined, pure even – leaders that had poise, charisma, intelligence, and a steady, calming presence.

We needed our potential leaders to be superior to us – not in a demeaning “I’m better than you” sense but in a “I’m here and everything is going to be better” sense. We needed leaders befitting the presidency of the greatest nation this world has ever seen. Continue Reading

Milton’s Responsibilities

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“There is one and only one social responsibility of  business, to use its resources and engage in activities designed to increase its profits”

– Milton Friedman 

 

Sound familiar? This is the thesis the brilliant Milton Friedman put forth in a famous article in the NY Times back in 1970 (he actually published the idea seven years earlier). This quote is widely used and often repeated – many times in ways that challenge or critique his basic assertion.Continue Reading

Crime and Punishment

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Yesterday we noted how a corporation is a single legal “person” made up of many people – in many respects not all that different from a single person entity. However, there is a substantial difference that should be addressed regarding corporations and their potential for abuses and wrongdoings. By it’s very nature a large corporation has more power than a small company simply due to the number of individuals – its mass if you will (we could complicate the matter further by looking at types of products dealt with, market position, etc. but let’s keep it simple for purposes of this discussion). As a result a corporation has the power to have a much greater impact than any one individual – for better or for worse. The larger the corporation, the greater the potential all else being equal.

There exists a second layer to this equation as well. Continue Reading

We Have Met the Enemy and He Is Us

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As I was reading another article and the accompanying comments attacking Trump’s tax loss I was struck yet again at the inherent evil many now seem to see in corporations. Corporations get blamed for most societal ills these days – along with government and, of course, Wall Street.

I find this sentiment troubling. Why does it happen and why does it exist?Continue Reading