Big U.S. Banks & Brexit

25 July, 2016 by Paul Devine in Commentary
Two of the largest U.S. banks reported their second-quarter earnings late last week, and while the earnings were as moderately strong as most analysts had expected, it was surprising how little attention was devoted to the Brexit both by bankers and analysts.  That’s not surprising, since most ... read more...

Second Quarter 2016 Appraisal Letter

The performance statistics shown above appear tame and even ordinary, and do not begin to describe the distorted condition of the capital markets in which investors find themselves today.  I have never seen anything like it, and I have seen a lot, including 20% interest rates in the 1970s, ... read more...

Puerto Rico to Default Today

Two years ago, almost to the day, I wrote about the Puerto Rican debt crisis and how mutual funds had foolishly loaded up on high-yielding, risky Puerto Rican debt.  Thus investors who thought they owned, say, Virginia municipal bonds, actually had 50% or more of their assets in Puerto Rican ... read more...

Buying Opportunities from the Brexit Sell-Off

U.S. markets have been up strongly yesterday and (thus far) today, as have British and European markets.  Are there buying opportunities among the stocks that sold off sharply on Friday and Monday? Fewer than you might think.  The selling on Friday and Monday wasn’t indiscriminate, and ... read more...

Brexit may not inhibit LSE/Deutsche Börse Tie-Up

Here’s another piece of evidence for thinking Brexit may not hurt UK companies as much as many think: although there are uncertainties about what final shape the deal will take, the Brexit vote hasn’t even deterred the proposed merger of the London Stock Exchange Group and ... read more...