Cullen Roche: Pragmatic Capitalism

Jason Hartman talks with Cullen Roche, founder of Pragmatic Capitalism, about macroeconomic events going on today, how Cullen studies the markets, why bonds are more attractive than many believe, and the investment strategy you have to adopt when investing in cryptocurrencies today. The two also take a look at the banking industry, money supply, and asset inflation. Key Takeaways: [2:12] What does Pragmatic Capitalism really mean? [10:45] The macro-economy still looks healthy...

Here’s an interview of Larry Kudlow, National Economic Council Director, saying that the deficit is “coming down rapidly”. I don’t know why he’s saying this because it’s not remotely true and there’s no reason for him to shy away from the rising deficit. The US Treasury’s Monthly Treasury Statement clearly shows the deficit is rising. The deficit is UP 12% this year versus the same period last year. Here it is in black and white: Now, the really interesting thing is why this is happening....

I just got back from the Evidence Based Investing conference hosted by Ritholtz Wealth and IMN in beautiful Dana Point, California. One of the persistent themes at the event was the importance of social media and blogging.  Basically, those of us who are being super transparent online are providing a totally different client facing experience than the old school brokers and advisors who mainly use their firm’s brand name to attract clients and prove their value. Blogging totally changed...

Here’s part two of the Q&A on passive investing. If you haven’t read part 1 it will be helpful to do that first since I laid out the necessary definitions and foundation for a clear discussion. I answered Marks’ first question about passive investing in the first post, but as it was running a little long I didn’t get to the next four. So let’s bang those out: Question 2: “What are the implications of passive investing for active investing?” Marks goes on to specifically ask: “what...

If you have read my 2012 essay on “The Myth of Passive Investing” then you probably don’t need or want to read what’s below.  If there’s a consistent theme on this website it’s that I am trying to establish a consistent taxonomy and set of understandings of financial concepts so that people can better navigate the monetary world we live in. Sadly, finance and economics is filled with words that are used in such a general manner that they have virtually no meaning. For instance, the word...

Warning – I am going to get a little bit political here so try not get your panties in a bunch over these comments. I am trying to be objective and apolitical which is becoming an increasingly difficult thing to do these days. That said, I want to be clear that I don’t like Donald Trump personally. I think he’s actually a bad person. Still, I think some of his economic ideas are very interesting. When I said that Donald Trump would likely win the Presidency back in 2016 I was mainly...

Something important is happening to corporations these days – they aren’t living as long as they used to. According to researchers at Dartmouth a public company listed before 1970 had a 92% change of being around in 5 years versus just a 63% chance for companies listed in the 2000’s (the study controlled for the financial crisis). Companies are dying faster than they ever have.  This is interesting in the context of General Electric’s removal from the Dow because GE is one of the ultimate...

Just a FYI here – I am speaking at this weekend’s EBI West conference organized by Ritholtz Wealth. This is one of the best investment conferences of the year. You won’t be disappointed if you attend. Last year I drank 10 margaritas in the pool and still won the competition for the speaker who did the best underwater handstand. I don’t remember my talk after all that, but I can assure you it was great. Just kidding. I can’t drink 10 margaritas. Not because I don’t want to (I do), but...

Donald Trump made a big stink at the G-7 this past weekend because he refuses to understand the simple reality of the US trade situation and insists on promoting a populist trade position that makes little sense. I’m gonna keep this real simple so bear with me for a second. The USA runs a trade deficit with most other countries in the world. This means we import more than we export. Whether this is “good” or “bad” depends on lots of factors. For instance, when I go to the grocery store I...

Ever since the financial crisis there has been an onslaught of people who think we need to scrap the entire financial system and start over. The main source of angst has been private banks. Basically, people think banks lent too much money and leveraged up the financial system and then we got a financial crisis. This isn’t necessarily wrong, but that’s not really how banks work. Let me explain. A bank is a lot like your water company. The water company supplies water through the pipes into...