20 11, 2020

Welcome to Collar Stocks!

By |2020-11-20T16:59:18+00:00November 20th, 2020|

Asked how he got so rich in the stock market, Baron Rothschild said, “I will tell you my secret if you wish.  I always sell too soon.”    Collaring a portfolio is a defensive, hedging strategy that investors may desire to employ every 4-6 years or so after the typical bull market has allowed their portfolio of stocks to attain the high price level they had hoped for. One might desire [...]

13 01, 2022

The Electricity Consumption of Bitcoin

By |2022-01-13T14:27:17+00:00January 13th, 2022|

There was a good article posted earlier this week by my good friend and colleague Brian Kasal in The Leadership Matrix on how the average consumer pays for the energy consumption of Bitcoin. The amount of energy consumed to produce Bitcoin is simply astounding.  Truth is, as more cryptocurrencies hit the market, there will be a greater and greater amount of electricity needed.  The real problem is the increased [...]

20 12, 2021

Lessons from Inflation and Printing Money

By |2021-12-20T21:43:58+00:00December 20th, 2021|

The value of the Turkish Lira is in absolute free fall, having lost 50% of its value since September.  This drop-off started when President Recep Erdogan ordered the Turkish central bank to slash rates to combat runaway inflation.  You heard that right- interest rates are being cut in Turkey to address inflation!  To be precise, four interest rate cuts have been implemented since September.  For perspective, central banks around [...]

19 11, 2021

A Tangle of Semiconductor Supply-Chain Complexities

By |2021-11-19T22:23:51+00:00November 19th, 2021|

It seems like at every turn, the effects of the semiconductor shortage can be seen.  An earlier Collar Stocks post touched upon how semiconductor supply chains are no longer ‘Fit For Purpose’ in the automotive industry.  It’s not just about the manufacture of cars- the chip shortage affects about any tech-related product.  In one way or another, semiconductor technology is imbued into many of the products used today.  A [...]

26 10, 2021

Intellectual Property and Who Has the Right to Brew Budweiser

By |2021-10-26T20:56:37+00:00October 26th, 2021|

My good friend and colleague Brian Kasal of FourStar just posted a great piece on the century-old dispute over who has the right to brew one of the most recognizable beers in the world- Budweiser. Reading his post brought to mind another famous intellectual property dispute that involved a patent on the machinery invented to produce one of the first ready to eat breakfast cereals, Shredded Wheat.  The inventor, [...]

12 10, 2021

One Thing Might Be Certain About Inflation… It Does Indeed Exist

By |2021-10-12T20:20:53+00:00October 12th, 2021|

Despite an uncertain consensus (see The Consensus Outlook on Inflation is… Uncertain!) on the risk for a period of prolonged inflation, a narrative is starting to develop that inflation is actually here.  The real question is whether the inflation is transitory, prolonged, or perhaps something in between. Will it stay or will it go? Here are some inflationary observations by John Cochrane, senior fellow of the Hoover Institution at [...]

28 09, 2021

National Brands Waning… or The Rise of the Small Brands

By |2021-09-28T17:48:13+00:00September 28th, 2021|

Over the last few decades, changing laws, regulations and buying patterns have resulted in a steady increase in sales across the country for small-scale microbrews. Are these craft beer sales steadily rising because younger generations are flexing newly acquired purchasing power to choose brands different than those in previous generations or is it simply that there are significantly more choices available as younger generations have become of drinking age? [...]

7 09, 2021

A Supply Chain No Longer ‘Fit For Purpose’

By |2021-09-07T21:13:25+00:00September 7th, 2021|

The pandemic has exposed the fragility of the global supply chain.  While just about every industry has been hit with logistical or supply  constraints, the automotive sector has been one of the most high-profile industries to get hit with supply issues, especially for semiconductor chips. Vehicles across the entire price spectrum incorporate more technology today for features such as safety, entertainment, and self-driving functionality.  There is also an overall [...]

20 08, 2021

How Rational Are Your Decisions?

By |2021-08-20T14:50:23+00:00August 20th, 2021|

This is a fascinating topic that my good friend Brian Kasal from FourStar posted on The Leadership Matrix.  Read how research developed by University of Chicago Professor Richard Thaler, the 2017 recipient of the Nobel Prize in Economic Sciences, explains how people may not always make the most rational decisions.  Some might even make decisions that aren’t in their best interest, like filling up on bread before a meal… [...]

6 08, 2021

The Consensus Outlook on Inflation is… Uncertain!

By |2021-08-06T16:14:20+00:00August 6th, 2021|

The ongoing inflation narrative has overshadowed economic policy discussions meant to help the country navigate out of pandemic lockdowns.  While signs may indicate rising prices across the economy, the real question is whether the inflation is transitory or not.  Another factor is how much government stimulus spending may contribute towards lasting inflation. Here are some thoughts from the Chicago Booth’s Initiative on Global Markets.  They asked its U.S. Economic [...]

14 07, 2021

New Life for Old Titles… and Aspiring Authors

By |2021-07-14T21:34:30+00:00July 14th, 2021|

Talk about the intersection of two worlds! A community of book lovers use the social media platform TikTok to post short video recommendations of their favorite books.  This group, collectively known as ‘BookTok’, has proven to bring new readers to older titles, introduce younger people to reading, and help authors find an audience for their work.  In total, BookTok posts have been viewed more than 12 billion times and [...]