September 22, 2017 By Steve Blumenthal “The message from a string of BIS [Bank of International Settlements] reports is that the US dollar is both the barometer and agent of global risk appetite and credit leverage. Episodes of dollar weakness - such as this year - flush the world with liquidity [...]Read More >

September 15, 2017 By Stephen Blumenthal “While asset prices have decoupled from fundamentals, the gap has been filled by quantitative easing, large cash reserves by corporations and worsening inequality.” - Mohamed El-Erian: In Investing, The Journey Is Not The Destination Last week, investors [...]Read More >

September 8, 2017 By Steve Blumenthal “Expect lower returns and rocky markets for the next 2-3 years.” > Joe Davis, Global Chief Economist, Vanguard Group I’m writing to you from Chicago where I am attending the Morningstar ETF Conference.  Vanguard’s global chief economist, Joe Davis, kicked [...]Read More >

September 1, 2017 By Steve Blumenthal “No act of kindness is too small.  The gift of kindness may start as a small ripple that over time can turn into a tidal wave affecting the lives of many.” Kevin Heath The car is loaded with clean clothes and dog food.  I’m heading out mid-morning to help [...]Read More >

August 25, 2017 By Steve Blumenthal “[T]he big elephant in the room is the Fed.” David Rosenberg Chief Economist and Strategist, Gluskin Sheff + Associates This week the Federal Reserve Bank of Kansas City is hosting its annual Economic Policy Symposium in Jackson Hole, Wyoming and a number [...]Read More >

August 18, 2017 By Steve Blumenthal “Anything that has happened economically, has happened over and over again.” – Ray Dalio Founder, Bridgewater Associates, in Bloomberg Interview My thinking is impatient and mostly critical as I sift through research each week.  I’m sure my “get to the point” [...]Read More >

August 11, 2017 By Steve Blumenthal “... Focused on the obvious and unimportant.” – Former Senior Economist, Federal Reserve Bank, Camp Kotok, August 6, 2017 Atop the “what matters most” list is debt.  Specifically, global sovereign debt: U.S., Europe, Japan and China.  We are at the end of a [...]Read More >

August 4, 2017 By Steve Blumenthal “The uncertainties are unusual in terms of number, scale and insolubility in areas including secular economic growth; the impact of central banks; interest rates and inflation; political dysfunction; geopolitical trouble spots; and the long-term impact of [...]Read More >

July 28, 2017 By Steve Blumenthal "Over the years I have seen scores of very bright investment advisors turn into hugely successful gurus who blaze into the investment business with spectacular forecasts. Yet, I've watched each and every one of them crash back to earth when a big subsequent [...]Read More >

July 21, 2017 By Steve Blumenthal “The primary, direct driver of default rates is not the yield on Treasury bonds but rather the business cycle.” Martin Fridson, CFA CIO of Lehmann, Livian, Fridson Advisors, LLC At a conference in Chicago this week, following up on last week’s letter, Keep [...]Read More >

July 14, 2017 By Steve Blumenthal “Our responsibility now is to keep dancing, but closer to the exit and with a sharp eye on the tea leaves.” – Ray Dalio, Bridgewater Associates, LP Ray Dalio, chairman of Bridgewater Associates, wrote last week that the global economy is heading toward a new [...]Read More >

July 7, 2017 By Steve Blumenthal “Would I say there will never, ever be another financial crisis? You know probably that would be going too far.  But I do think we’re much safer and I hope that it will not be in our lifetimes, and I don’t believe it will be.” - Janet Yellen, Federal Reserve [...]Read More >

June 30, 2017 By Steve Blumenthal “Change of a long-term trend is usually gradual enough that it is obscured by the noise caused by short-term volatility.  By the time secular trends are even acknowledged by the majority they are generally obvious and mature.  In the early stages of a new secular [...]Read More >

June 23, 2017 By Steve Blumenthal “Investors need risk management in bear markets, not in bull markets.” “We are in the business of making mistakes.  The only difference between the winners and the losers is that the losers make big mistakes and the winners make small mistakes.” “There are a [...]Read More >

June 16, 2017 By Steve Blumenthal “Make new friends but keep the old, one is silver and the other is gold.” – Author Unknown The words above were etched on a wooden plaque that hung in my family’s kitchen.  Mom was sending us a message and she’d point us to those words anytime we were quick to [...]Read More >