A recurring theme in various EVAs over the years is the importance of the yield curve. Sorry, I know a term like that can literally throw non-professional investors—i.e., those with a real life—for a curve. But, unlike with so many human relationships, it’s NOT complicated.
Zero interest rates have made a great many people a great deal richer. But paradoxically they have strangled wealth creation. The reason for this is that enterprise is overwhelmingly a phenomenon found among smaller companies. Among big companies it is a rare quality.
Long-time EVA readers know that I am an unabashed admirer of my friend and partner, Charles Gave. Recently, I had a chance to chat with him in Whistler at the annual Gavekal retreat and, even though he is knocking on the door of the three-quarter century mark, he has not lost his wit nor his willingness to challenge prevailing orthodoxies.
The “I” word. The word “impeachment” has been thrown around several times in the history of American politics. The first sitting president to be formally impeached was Andrew Johnson, in 1868, for abuse of power. Over a century later, Bill Clinton was the second US president impeached for perjury and obstruction of justice. Both were acquitted in the Senate, but their names will be forever associated with that long, humiliating “I” word.
Around the world in
eighty days eighteen minutes. For all the non-bibliophiles reading this week’s EVA, Around the World in Eighty Days is a classic novel written by French author Jules Verne. While the book is fictional, it has inspired several real-life adventurers to follow in protagonist Phileas Fogg’s footsteps and circumnavigate the world in 80 (or less) days.