Gary Gordon Blog

Last week’s consumer news. What it means for your investment assets.

Last week’s consumer news.  What it means for your investment assets.
Jun 05, 2018 by Gary Gordon

What do you remember about last week’s news?  Certainly you remember Roseanne and Samantha. Possibly you recall the beginning of the NBA Finals.  Then there’s the economy nerds like me who hit the trifecta last week:

-        Wednesday May 30, the Q1 GDP report.

-        Thursday May 31, the April personal spending and income data.

-        Friday June 1, the May jobs report.

Yes, Roseanne and Samantha were a lot more entertaining, but the nerd trifecta was more important for your investment portfolio. 

In this post I use the trifecta data to get insights into two crucial investment return drivers – inflation and consumer spending. 

A Short and a Long Stock Idea. Or, This Schizo Stock Market.

A Short and a Long Stock Idea.  Or, This Schizo Stock Market.
May 23, 2018 by Gary Gordon


Amazon is an amazing company in many ways, but one of the most striking is its business model.  Amazon has been a retailer for 24 years.  It is no longer a teenager.  But it acts like a teenager, focusing constantly on growth rather than maturing into a near-term profit maximizer.  I call it the “Amazon Syndrome”.  But what if a company doesn’t have Amazon Syndrome?  What if it focuses on making money?  This schizophrenic market treats it very differently.  In this piece I am going to talk my own book and suggest an Amazon Syndrome short – Wayfair (symbol W) – and a discarded profit-making long – MGIC (symbol MTG). 

My Advice – Steer Clear of “Alternative” Investments.  Rather, Overweight What They Are Buying – Stocks.

May 01, 2018 by Gary Gordon
The major investment asset classes are cash (bank deposits and money market funds), bonds and stocks.  Another group of investments often considered to be a separate asset class is “alternatives”.  They include hedge funds, private equity, and venture capital.  They are viewed as a separate asset class because their results often don’t vary along with the results of the other asset classes; they could have a good year in a bad year for the stock market or vice versa.  They also historically have frequently generated much stronger returns than traditional investment assets.  

The Federal Deficit: A Boost to Stocks Now, A Big Risk to Stocks Down the Road.

Apr 05, 2018 by Gary Gordon

The federal government deficit got a nice boost from two recent Congressional actions, as you all know.  First, Congress passed a package of tax cuts focused on businesses that could add up to $1.5 trillion to federal deficits over the next ten years.  Then it passed a budget bill that adds about $150 billion a year in military and social spending.  That’s about $300 billion a year added to the federal deficit.  Remember the Tea Party?  Me neither.

The end of an era. A new one to begin. And a parting gift (hopefully).

The end of an era.  A new one to begin.  And a parting gift (hopefully).
Jan 05, 2018 by Gary Gordon
At the request of the Mueller Investigation and on the advice of counsel, this is the last post of Financial Fables and Facts.  I thank all of you who have treasured my work over these past two years.

But all is not lost.  I have received funding from a coalition of Kurdish, Catalonian and Scottish separatists.  I have established residency on the Isle of Man, and access to underground servers in Manchuria.  As the Lord is my witness I shall arise, phoenix-like, with another blog.  In about two months.  Stand by, and weather the next two months as best you can.  

Boy Are We Rich

Boy Are We Rich
Dec 10, 2017 by Gary Gordon
I got my early holiday present on December 9.  That was the day the Federal Reserve issued its third quarter 2017 Financial Accounts of the United States.  While not quite as gripping as the second quarter report – a high bar indeed, wouldn’t you say?– it contained moments of joy, despair and as usual no humor whatsoever.  Particularly relevant to today, the Financial Accounts tell us how rich we Americans are.