Equity

Growth in the Age of Cheap Capital

This note helps readers understand how corporate management thinks about and makes deliberate choices about their capital structure, depending upon market conditions, discount rates, level of employment in the economy and other factors. A refresher on Modigliani and Miller, and assessment of why companies appear to be doing better yet unemployment remains high.

Liquidity and the Markets

Explains how illiquid portfolios played a role in the violent plunge in global equity markets in the recent past, why prudent use of liquidity is an element that investors can use to their advantage in generating returns and why understanding liquidity can also help us to interpret market activity.

Head Over Heels for the Yield Curve

Examines the perils of prediction and the relationship between an inverted yield curve and recession, the stock market and the economy as a whole. Explains why the disciplined investor would not make sudden, sharp changes in portfolio strategies to "beat the gun" based on an inverted yield curve.