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In normal environments, the Fed is in sync with the market, so when the Fed cuts rates, long-term borrowing costs follow that path. But when the Fed does the wrong thing – long duration bonds like the 10-year U.S. Treasuries run screaming in the opposite direction. That seems to be the case now.
When things get really bad, escaping to the Grand Canyon is not enough. You need cash, passports, food, and all the right investments. Kim Iskyan explores Plan Z.
Covering everything from workers’ compensation to terrorist attacks, the founders of this insurance company are excellent stewards of shareholder capital and they oversee a disciplined and profitable underwriting process, generating high margins and increasing market share.
Just a few years before Michael Lewis was at Salomon Brothers, eventually writing his best-seller Liar’s Poker, Porter & Co. Distressed Investing analyst Marty Fridson was in another part of the building at One New York Plaza, identifying profitable trade opportunities in the debt market. He shares details in today’s Journal.
When investing in distressed debt, be very selective about which distressed bonds you buy. Buying a market basket of assets – a quick, efficient way of adding to equity holdings – is not a smart alternative with distressed debt.
One-third of the reserves of our biggest banks are deeply underwater today. As Porter writes, Bank of America is in a deeper hole than all of them. And even if you don’t keep your money there, you might end up paying for it.
It’s no secret that Warren Buffett has been selling shares of Bank of America. These details are public. What nobody has figured out is why Berkshire has sold almost all of its bank stocks since early 2020.
Nearly a decade ago, Porter made a big gold-stock recommendation that generated massive returns. Now we see another huge opportunity in this space. In fact, this setup could prove to be even better than the last one – because there is one key difference now.
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