Month: February 2023

Short-Term Paper, Quality Names and Gold

Short-Term Paper, Quality Names and Gold

Short-term Treasuries look attractive. The 1-month T-Bill offers a 4.67% yield. Beats cash and beats holding an equity index fund or ETF. I'm always a fan of owning Quality companies at an attractive price. However, I don't value equities as most investors do - I don't bucket stocks into "Value" "GARP" and "Growth" buckets. I … Continue reading Short-Term Paper, Quality Names and Gold

Google Looks Attractive

Google Looks Attractive

GOOGL shares look attractive. 11.4x EV/Operating Cash Flow and an 8% cash flow yield for a quality company that I would rather own versus overvalued Tech stocks like PLTR, COIN and scores of others. If you ask me, GOOG is going to gain share across its Remote Server business (GCP), and its Productivity products (Docs, … Continue reading Google Looks Attractive

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed essentially did nothing this past week in terms of tightening the money supply. QT hasn't been nearly as aggressive as the Fed's QE efforts - especially when you consider the cumulative effect of QE from 2009-early 2022. This Fed's ideology is not aligned with getting CPI down to 2% as I wrote back … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

QT Pause This Summer As Part Of Debt Deal?

QT Pause This Summer As Part Of Debt Deal?

I would advise the Fed against pausing QT, but perhaps the central bank will pause QT this summer as part of raising the debt ceiling. By "pause" I mean the following: Congress will lift the debt limit this summer (it is not a question of "if" but "when"). Once the debt limit is lifted, Treasury … Continue reading QT Pause This Summer As Part Of Debt Deal?