During the time the U.S. grew economically after the Civil War ended, a class of ultra rich entrepreneurs rose to the top of many of America’s industries. Those that were the most successful had the backing of crafty financiers to provide large sums of capital when needed and to solve financial problems that blocked or […]
JOHN PIERPONT MORGAN—AMERICA’S GREATEST FINANCIER Read More »
When the China joined the World Trade Organization in 2001, an up-and-coming economy soon became an economic powerhouse with dynamic 6-10% plus growth in GDP year after year. The Chinese stock markets became the market of choice for many foreign investors to take their money for great, and sometimes outsized, returns. For sundry reasons this
IS NOW THE RIGHT TIME TO INVEST IN CHINA: PART III Read More »
Life insurance companies do not always make a profit from the insurance underwriting portion of the business. Most of the profit comes from investing the policyholders’ premiums and realizing the financial returns. In a way this amounts to a double-edged sword of risk taking—first in the underwriting of insurance policies, and secondly in the management
HOW LIFE INSURANCE COMPANIES ARE IMPACTED BY PRIVATE-MARKET FIRMS Read More »
This is the third in a series of blogs regarding private foreign investment in Chinese companies. Efforts are underway in Beijing to stimulate the Chinese economy to return it to its former levels of growth. Ordinarily this would provide potentially outstanding opportunities for foreign investors, but there are a number of pitfalls remaining that should
IS NOW THE RIGHT TIME TO INVEST IN CHINA: PART III Read More »
Although the Federal Reserve has said that it will leave the door open for more interest rate hikes should rampant inflation revive, the interest rate tightening cycle is nearly complete. The rampant inflation factor in the economy has been checked for now, but how soon will interest rates be reduced? Too Low Too Long: Since
INTEREST RATES ARE LEVELING OFF, BUT WHEN WILL THEY DECREASE? Read More »
At no time during the American Revolution were the American Colonies able to match the British Royal Navy at sea. However, with only a modest navy the Continental Congress resorted to commissioning private citizens to arm vessels and attack British shipping for profit. The results put a positive tilt on the war in the American
HOW PRIVATEERING AIDED THE AMERICAN REVOLUTION Read More »
Ten years ago, China embarked on a major effort to increase its economic power and influence across Asia, Africa, and into Europe. The name of this program came from Xi Jinping, China’s president, when he spoke of building an “economic belt” along the “silk road” that was the land route to China for many centuries
CHINA’S BELT AND ROAD INITIATIVE TEN YEARS AFTER Read More »
The so-called “Soft Landing” term that gets bantered about whenever there is some Federal Reserve monetary policy activity refers to bringing inflation down without harming economic growth. It can be visualized as landing an airplane safely with shifting winds all around it. It’s difficult to land an airplane under those circumstances, but it’s nearly impossible
IS THE U.S. ECONOMY HEADING FOR A SOFT LANDING? Read More »
The evidence is mounting that Xi Jinping, China’s president, is ever tightening the communist party’s control of all aspects of society in China. In addition to internet censorship, rewriting school textbooks, and imposing ideological crackdowns on arts, music, and entertainment, the communist party now wants to control all aspects of business including those companies that
IS NOW THE RIGHT TIME TO INVEST IN CHINA: PART II Read More »
As we all know, increased inflation has set in on the U.S. economy. Spending habits for consumers will change as purchases are postponed and household sacrifices are made. But what does inflation due to the investment sector of the economy? Higher Interest Rates Inhibit Development: Long-term investing that leads to development is especially impacted by
INFLATION CAN MAKE INVESTING PROBLEMATICAL Read More »