While most investors are focused on sales growth & margins, they would be well served to further consider the strength of a company’s balance sheet. We look at BlackRock’s financial condition as an illustrative point.
The Importance of Free Cash Flow in Financial Analysis
Cash represents the lifeblood of all business enterprises which is why it is important to analyze free cash flow which we define as operating cash flow minus capex, dividends, and stock buybacks. We illustrate DoorDash as an example of why cash flow analysis is so important.
Lessons From Tucker Carlson
There are many theories about why Fox booted Tucker Carlson, but it may be a very simple reason which can instruct everyone involved in the consumer retail segment.
-1.59% Spread Between the 10-Year & 3-Month T-Bill
The NY Fed’s yield curve model forecasts a 68% recession probability. Since 1960, a yield curve inversion (as measured by the difference between 10-year and 3-month Treasury rates) has preceded every recession on record.
Dream of a New World Order
George H.W. Bush’s speech on 9/11/90 to defend Operation Desert Shield, 11 years to the date before the twin towers & 22 years to the date before Benghazi, should act as a reminder of how to prepare for what faces us 33 years later…
What’s Going on with Small Banks?
While there has been a lot of concern that a deposit run on small banks would put them out of business, a little history provides important context to their circumstances.
How Does the US Export Inflation?
One of the main global complaints against the hegemony of the US$ is that it allows our country to export inflation. Here is a primer on how that works.
How Much of a Tax Hike Would Be Needed to Cover the Gov’s Defecit Spending?
A shocking analysis of the difference between federal outlays & tax receipts reveals that, for the most part, a balanced budget is within reach.
A Run on the Fed?
The Fed has crushed its own bond portfolio by hiking interest rates. Maybe there will not be a run on the Fed, but perhaps we should be more concerned about a run on the US$.
China Schools the US on Morality
Must read: China lectures about U.S. Hegemony & Its Perils. Maybe China would prefer if it had hegemony instead? Some classify this diatribe published in February 2023 as an informal declaration of war.