Image by Andrew Martin from Pixabay I’ve said it before, 2023 has been a heck of a year. In just five months, four large regional banks and one major global financial institution shuttered, marking the second-worst year for bank failures. Only the Great Financial Crisis of 2007 to 2009 (GFC) was worse. Understandably, many have..
Image by Vitor Dutra Kaosnoff from Pixabay The recent wave of bank failures returned asset liability management (ALM) to the spotlight. Many correctly identified ALM breakdowns as causing their ultimate demises. Yet, ALM remains an underappreciated investment topic. It determines the fate of every company, not just the financially-oriented. Yet, few seem to fully appreciate..
Image by Berenice Calderón from Pixabay The failure of Silicon Valley Bank (SVB) has brought questions of systemic risk to the forefront. SVB was the third regional bank to fail this month (along with Signature Bank and Silvergate Bank, collectively referred to as the “S Banks”). These coincided with the Swiss government-brokered acquisition of Credit..
Image by Carlos Lincoln from Pixabay Central banks endlessly fascinate me. The more I research them the more contradictions I find, particularly since their missions and impacts changed over time. Take the Federal Reserve (Fed), for example. It was originally created to countercyclically balance volatile market forces in times of stress. However, the evolution of..
Image by Dinh Khoi Nguyen from Pixabay Inflation is one of the most important, debated, and controversial investment themes today. It’s impacting every asset class from fixed income to commodities to equities. Yet, inflation’s widely misunderstood. While well-known among layman and expert alike, inflation’s definition changed over time. However, not everyone has noticed. As inflation’s..
Image by Jose Antonio Alba from Pixabay So far, my 2023 investing looks just like 2022: lots of waiting. I’m not waiting for a recession to pass or for GDP to improve. I’m not waiting for a certain employment report or for corporate earnings to change. I’m not waiting for the Consumer Price Index (CPI)..
Image by congerdesign from Pixabay I read a fair amount these days. I do it strictly for pleasure which frees me to take my time and explore a wide range of topics. While not everything I read is about investing, I find many to have relatable themes. Below is a catalog of books and papers..
Image by Tim C. Gundert from Pixabay Many types of currencies have been used throughout history. Sometimes commodities defined them. Other times, private bank notes circulated as mediums of exchange. Today, fiat currencies reign supreme while some eye cryptocurrencies as the future. Like so many aspects of money, currencies are hotly debated. This results from..
Image by 14995841 from Pixabay Note from the author: I use the terms stability and instability throughout this article. However, resiliency and fragility, respectively, more accurately describe the phenomena that I’m describing. Centralization creates fragility and decentralization creates resiliency. Please note this as you read the article below which I left in its original form…
Image by Penny from Pixabay Everyone loves to talk about money. While commonplace, money actually means different things to different people. Its many and conflicting definitions lead to vastly different economic conclusions and tend to confirm one’s preferred viewpoint. As a result, money’s lost all utility as an objective investment tool. However, redefining it in..