Selected and Casual Road Notes - Weekly Blog # 906

 

 

 

Mike Lipper’s Monday Morning Musings

 

Selected and Casual Road Notes

 

Editors: Frank Harrison 1997-2018, Hylton Phillips-Page 2018

 

 

In London on a visit with Mount Vernon Ladies Association.

1. PNC buying a Colorado Bank signifies that it needs more assets than it can reasonably produce operationally.
2. Long-term, the fixed income swing in wealth management accounts is bullish for equities.
3. The value of information is more than its accuracy.
4. Nitrate risk in Iowa and other states is a big problem for the farm community.
5. In the UK, a cartoon referred to Andrew Jackson as King Andrew. He was the first of our four activists Presidents. The other three were Teddy Rosevelt, FDR, and now Trump. Each tried to materially change the financial structure of our society and fought with the courts, which may have hurt more than it helped.
6. The British Empire was based more on global trade than military strength. With that as a thought, allow me to present a very controversial goal which will be very difficult to create. The US and China should form a common market as the two largest markets. Both countries have disciplined labor, science, and leadership based on corporate skills.
7. Adam Smith’s Wealth of Nations was read by William Pitt, the younger. His leadership may have been a major contributor to British economic growth after 1776.
8. Through Thursday, the year-to-date average performance of US Diversified Equity Funds was +12.70%. Only Large-Cap Diversified Growth funds did better. However, a large number of equity fund averages were better, mostly technology and overseas investments. Five fund peer groups produced rises of more than 30%: Global Precious Metals +98.46%, Latin America +36.75%, China +32.84%, International Value +31.69%, and International Multi Cap Value +30.94%.
9. The AAII survey sample of six-month projections showed 28% being bullish and 49.5% bearish. These are close to extreme results.

 

Conclusion

Too much attention is paid to the short term, with media commentary often having a negative slant. There clearly are risks, with our current activist president paralleling the 1929-1932 period, where FDR accidently turned a recession into depression. Even so, the long-term for our descendants could be quite attractive, eventually.

 

 

 

Did you miss my blog last week? Click here to read.

Mike Lipper's Blog: Bad Comparisons Can Lead To Faulty Conclusions - Weekly Blog # 905

Mike Lipper's Blog: Appeals Court Rules (7vs4) Against Trump, but Life Goes On - Weekly Blog # 904

Mike Lipper's Blog: What We Should Have Been Watching? - Weekly Blog # 903

 

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