INFLATION PRESSURES ARE BUILDING. PROTECT YOURSELF.

The Federal government is pursuing seemingly unlimited spending and is enabling this with unsustainably low interest rates. Investors need strategies to preserve purchasing power and stay ahead of the stealth erosion of their savings.

Why Germany's Already on the Hook for 450BN Euros

As I’ve watched the ongoing saga in Europe, the discussions of sustainable Debt:GDP and other elements of the “Maastrict Criteria” I’ve often been puzzled at why these figures were so important. The U.S. represents a large single currency union, and although different states have incurred different levels of indebtedness there is no Federal law dictating […]

6% Yields In Senior Loans With A Cheap Market Hedge

We continue to like using a short Euro position in combination with risky assets. In our Fixed Income Strategy we’re invested in senior loans through closed end funds such as BlackRock Defined Opportunity Credit Trust (BHL) and ING Prime Rate (PPR). They’re both at a modest discount to NAV of around 5%, and yield over […]

Today's Unemployment Report is all Good

This looks on the surface to be good news across the board. Private payrolls up almost 100K greater than consensus; increased hourly workweek, and a drop in the Unemployment rate in spite of an increase in the labor force. Not a 4% GDP type of number, but good enough to reassure that the 2-2.5% type […]

The Case for JC Penney

It’s hard to watch JC Penney’s CEO, Ron Johnson, give his presentation yesterday without feeling a tinge of excitement that we’re at the beginning of something new in retailing. His absorbing performance promises a new paradigm in retailing. Turning around JCP won’t just be a question of spending ad dollars more wisely or weaning customers off perennial […]

How The Hedge Fund Industry Has Kept 98% of The Profits in Fees

Bloomberg TV invited me back on this morning – the sorry results of hedge fund investors are just too incredible to be believed and so they asked to produce a chart illustrating how fees have been split. It turns out that if you calculate how much money hedge funds generated BEFORE fees from 1998-2010, and […]