Keeping Perspective
This quarter’s newsletter does not directly relate to investing, although it provides an interesting framework for investing and life in general. The news flow of today seems very polarizing – we would not blame you
Tax Cuts Require Either Output Improvement or Spending Cuts to Reduce Deficits
Political biases aside, the United States requires a lot in taxes from its economy’s most wealthy participants. In order for currently proposed tax cuts to either trim the deficit or not add to it, economic
Cheap Eats Drive Home Run Stock Performance
The D&K Blog will periodically attempt to cover interesting companies and stocks. If I asked you whether Domino’s has outperformed FANG over the last eight years, would you have said yes? DPZ claims to be
Shift to Passive Investing Could Disrupt Market
The move to passive investing, into index funds and out of actively managed mutual funds, means more money flowing into the largest companies in the S&P 500. Are we witnessing a self-fulfilling prophecy where the
Can Stock Prices Withstand a Rise in Interest Rates?
The United States Federal Reserve’s Federal Open Market Committee (FOMC) recently suggested it will target a range of 0.75%-1.00% for the Federal Funds Rate (FFR) by the end of 2017. That implies two more increases
Volatile Year Ends with Several Outstanding Questions
In the past we have written to you regarding volatility. Investors use volatility as a quantitative measure of risk. However, we view volatility as an ongoing source of opportunity. Accordingly, 2016 provided plenty of both
Moving Past the Hidden Bear
As we transition through the uncertain period of the United States Presidential Election, we note a few concerns as well as some optimism. The election itself, Federal Reserve (Fed) policy, and economic growth will key
Where Did The Oil Dividend Go?
For 18 months, we have all heard about the so called oil dividend to consumers – the benefit to consumers’ pocketbooks as a result of a plummeting oil price. Graph 1 illustrates the decline in
Reevaluating Interest Rate Path
Virtually every morning our investment committee engages in a lively exploration of many topics. These discussions range from viewpoints on the macro economic environment, to geopolitical issues, market trends, sector developments, company specific changes, etc.