In the article, The quarter-century buyback era draws to an end, I announced the demise of the dominant role of stock buybacks in the economy, although there has been no official death certificate and the body has not yet been found. The buyback era began in 1982 when the US Securities and Exchange Commission promulgated Rule […]

In March 2009, HSBC PLC strengthened its finances by making a preemptive rights offering of new equity. The bank quickly raised $18.5 billion dollars. Unlike Citibank, Bank of America, and other giant US banks, HSBC did not have to sell its soul to the government to stay in business. HSBC had the good fortune […]

The Obama administration and the US Congress are laying the foundations for high inflation when the economy eventually recovers from the recession. US equity investors should be ready for the effect that a rapidly devaluating currency may have on earnings-per-shares and price-earnings ratios. How inflation increases corporate taxes Companies with fixed assets […]