May 24, 2019

Kevin Duffy on the changing nature of fraud

As a society, we’ve replaced conscious deceit with self-deceit, targeted fraud with intellectual fraud, and little lies with the Big Lie.

~ Kevin Duffy, May 24, 2019

May 22, 2019

Philip Duffy clears up the difference between democracy and a constitutional republic

The United States is not a democracy in spite of the nonsense that students learn in school.  It is a federation of sovereign state republics with limited, enumerated powers defined in a constitution.  That doesn't fit on a bumper sticker, whereas democracy does, which probably reflects its appeal.  The framers of the Constitution had a different perspective, choosing to not mention democracy once in the text of the Constitution.  It is not that they didn't think about the term.  Democracy is actually mentioned five times in The Federalist, all in a negative context.  The founders feared democracy as much as they feared monarchy.

~ Philip Duffy, March 22, 2019

May 19, 2019

John Madden on competition

If you can't run with the big dogs, stay on the porch.

~ John Madden

John Madden on hard work

The road to Easy Street goes through the sewer.

~ John Madden

May 13, 2019

Marko Kolanovic sees 3,000 on the S&P 500 soon

If earnings season is not a complete disaster, I think markets will go higher and we could actually see our price target [of 3,000 on the S&P 500] being achieved earlier, maybe even sometime in May or June.

~ Marko Kolanovic, J.P. Morgan’s global head of quantitative and derivatives strategy, as appeared on CNBC, April 3, 2019

(The S&P 500 closed at 2873.)

May 10, 2019

Financial Times: "gold is a goner" (1997)

In the western world more people are buying gold to wear, as jewellery or watches, because it makes them feel good and they can pretend to themselves that these objects will hold their value. They conveniently ignore the fact that the cost of design, production, profit and taxes usually far outstrips the value of the gold content.

But when it comes to bullion as an investment, and as a measure of national wealth, gold is a goner. The reverse alchemy is almost complete. Eddie George, governor of the Bank of England, like Fort Knox, one of the great citadels of gold, recently told a European parliamentary committee: "Whereas gold used to be seen as a good asset, it is now seen as the bottom of the pile."

~ "The Death of Gold," Financial Times cover, by Kenneth Gooding, December 13, 1997

Kevin Duffy: Is this country doomed?

No, the country is not doomed. But we clearly have "issues." If you want real problems, go to Venezuela. The amount of money going into private R&D around the world is at record levels. China was a basket case in 1980 with just 1% of the world's exports; now it's 13% and building a viable VC industry. The world's vital signs keep improving: life expectancy, infant mortality, homicide rates, etc. In the 1960s, 50 out of every 100,000 global citizens died annually from famine; by the 1990s, that number was 2.6.

This is all happening despite an epidemic of economic illiteracy and the resulting government meddling in the economy. It's amazing how the free market can still operate with all of the interference. Imagine the human potential if man figures this out! I am a long-term optimist on the human experiment, but that doesn't mean there won't be plenty of stumbles along the way.

~ Kevin Duffy, Facebook post, May 9, 2019