Will Risk Parity Blow Up…???
For four decades, the US stock market has traded up and to the right. During those brief moments of setback, treasuries usually rallied strongly. The fact that these two asset classes seemed to offset each other, creating a smoothed-out return profile, was not lost on certain fund managers who created portfolios comprised of the two. […]
When The Levee Breaks…
If it keeps on rainin’, levee’s goin’ to breakIf it keeps on rainin’, levee’s goin’ to breakWhen the levee breaks, I’ll have no place to stay. Mean old levee taught me to weep and moan, LordMean old levee taught me to weep and moanIt’s got what it takes to make a mountain man leave his […]
On Staying Liquid…
I believe investing is a game of keeping powder dry and waiting for layups. So many investors miss this lesson. They stay fully invested in middling situations for various reasons—often mental. Who cares if it is at 90% of fair value?? Recycle your capital. Why are you in a business with deteriorating numbers?? Recycle your […]
Trading “Project Zimbabwe…”
At the depths of the COVID crash, I began writing extensively about the equity market ramifications of unlimited fiscal and monetary stimulus. To start with, I believed it was obvious that the equity markets would blast higher—as a result I strapped on as much exposure as I could stomach while remaining a responsible fiduciary. I was […]
It’s JOEtime!!!
View from JOE’s WaterColor Inn Back in June of 2018, I wrote an initial piece on St. Joe (JOE – USA), owner of approximately 175,000 undeveloped acres along with assorted commercial real estate on the Florida Panhandle. My thesis was that the stock was trading at $18 and the land was worth a few times that figure. […]
“Project Zimbabwe”
Roughly a month ago on the afternoon of Sunday, March 8th, Fed Chairman Powell had an (fictional) emergency staff meeting. Powell: I want the nuttiest money printing plan ever. What action plans do we have that are prepared and ready to initiate? Admin: Well, we have this one named “GFC 2.0” Powell: Sounds tame and sedate. Won’t impress […]
Hey JOE–Where Ya Goin With That Land Over There…
Friend: Kuppy, stop the car!! Me: Uggh, again? Friend: Let’s get out. Me: We have 177,000 acres to visit. We can’t stop at every damn acre. Friend: Yeah, but not every acre is next to million dollar homes. Me: …A surprising number of them seem to be… It’s already noon and we’ve seen less than […]
