Donald Trump will be the next president of the United States. Needless to say, that took a lot of people by surprise. As I’m writing this Tuesday night, Dow futures are down 800, and the dollar is tanking. People are panicking. It’s the end of America… the end of democracy itself! My advice? Wait...Read More

Jeremy Grantham had some good comments in GMO’s third-quarter letter to investors. I have come to believe, however, very reluctantly, that we bubble historians have, together with much of the market, been a bit brainwashed by our exposure in the last 30 years to 4 of the perhaps 6 or 8 great investment bubbles in...Read More

A year ago, European Central Bank chief Mario Draghi promised to “do whatever it takes” to save the euro.  The reality is that he hasn’t done much of anything.  He hasn’t had to. The Outright Monetary Transactions bond-buying scheme—which was designed to calm the bond markets by buying potentially unlimited amounts of Eurozone periphery-country bonds...Read More

The “Abe Trade” is back on…for now. The “Great Bernanke Scare” of May and June hit Japanese equities hard, forcing the Nikkei into “official” bear market territory (a loss of 20 percent or more is considered a technical bear market by most analysts).  But in the six weeks that have followed, Japanese stocks have recouped...Read More

The votes have been counted.  Japan’s Liberal Democrats—the party of Prime Minister Shinzo Abe—won a landslide victory over the weekend, securing control of both houses of parliament. The implications here are huge.  Abe is as close as you can get in modern Japan to a militant nationalist, and the win will only encourage him to...Read More