Memorandum #152
In their Quarterly Letter, Jeff and Ron Muhlenkamp discuss what changes in economic data prompted the Federal Reserve to adjust the federal funds target range and how various policy choices of the presidential candidates may affect the economy and our investors’ wealth. In Tony Muhlenkamp's, “Letter to My Daughters: On Politics and Markets,” he refers to the women in the movie “She Rises Up.” These women learned that their countries are NOT dysfunctional because they are poor; they are poor because they are dysfunctional. What does that have to do with politics? It turns out—everything. Link to full PDF: Memorandum [...]
How to Sleep at Night During TEOTWAWKI
It doesn’t matter to what political party you belong—everybody’s worried about the election. It doesn’t matter what your ideology is; it doesn’t matter who you like or what you want. Everybody’s anxious and worried to the point of saying, “It’s the end of the world.” It’s the end of the world unless we vote a certain way, buy a certain product, or … (you fill in the blank…). While it might be “TEOTWAWKI” (The End Of The World As We Know It), it’s not the end of the world. The end of the world as we know it is different [...]
Letter to My Daughters: On Politics and Markets
Your mother asked me to write about "The Impact of Political Uncertainty on the Markets,” which is pretty simple. The markets hate uncertainty; they hate not knowing what the rules of the game are or are going to be; and the more uncertain things are the worse the markets behave (meaning they go down and you lose money). However, there are more nuanced, subtle, and complicated impacts that politics have on markets, economies, and prosperity for individuals and nations. Over the last several months (or has it been years?), I’ve been writing to you about the importance of work, the [...]