The world of Round Hill consists of two distinct countries with two distinct economies separated by one gigantic ocean. The sun rises on the Independent Republic of Hamlin in the east and sets on the Democratic Nation of Stuart in the west. For more than 200 years, free trade, low ...read more
Trucking and the Absence of Cheap Oil
Apr 11th, 2008 | By Christopher Hancock | Category: Commodities, Energy
For one moment, forget about stock markets as divine measures of prosperity. Focus on the lives of ordinary citizens. We read that 28 million Americans will subside on food stamps this year — the most since Congress enacted the program in the 1960s. A typical trip to the grocery store ...read more
Watch Out for this Market
Mar 21st, 2008 | By Christopher Hancock | Category: Macroeconomics
Surge, plunge, rocket or drop: What will the Dow do?
The Fed injected $400 billion last week. It capped its cash infusion on Palm Sunday with a 25 basis point cut to the discount rate ordinarily charged on direct loans to banks, but now also extended to securities dealers.
But $400 billion ...read more
As China Continues To Grow, They Watch For Inflation
Mar 7th, 2008 | By Christopher Hancock | Category: International, Macroeconomics
A dozen or so gun-laden soldiers from China’s People’s Liberation Army (PLA) stood quietly among the customs agents at Lo Wu Station. The KCR East Rail, the commuter train that left Hong Kong at Tsim Sha Tsui 45 minutes prior, pulled in for its last stop. Shenzhen, once a remote ...read more
Keeping the Needs for the Basics Ahead of the Wants for the Apples
Feb 29th, 2008 | By Christopher Hancock | Category: Investing Strategies
Federal Reserve Chairman Ben Bernanke gave us a choice this week: A debilitating recession or destructive inflation. You decide.
We vote for recession. Bernanke, however, opts for inflation.
We shrug. So does Mr. Market. The Dow tumbles. Oil surges to a record $102.59. Gold jumps $15.50, to $970. Wheat, cotton, rice and ...read more
The Stimulus Package and the Magic $170 Billion
Feb 19th, 2008 | By Christopher Hancock | Category: Macroeconomics
“Taxation is a pivot upon which economies, countries, governments and empires rise and fall. It can mean the difference between war and peace, prosperity and ruin.”
— Nathan Lewis
President Bush proudly signed off on a $170 billion stimulus package last week. Congress willingly approved. The two peacefully joined hands for the ...read more
As the U.S. Dollar Tanks, Investing Overseas Never Looked So Good
Feb 11th, 2008 | By Christopher Hancock | Category: International, Investing Strategies, Macroeconomics
Last Tuesday at approximately 10:35 p.m., 6-8 juveniles approached a man walking westbound on the north side of E. Madison here in Baltimore. One youngster displayed a knife and demanded money. Another pulled the victim’s wallet from his rear pocket.
The victim, a Johns Hopkins student, grabbed the wallet from the ...read more
Learning to be a Value Investor
Jan 25th, 2008 | By Christopher Hancock | Category: Investing Strategies
Marty Whitman of the Third Avenue Value Fund is one of my favorite investors. With any luck, he’ll be one of my wife’s, as well. My wife, like Marty, loves to buy things cheap. And she’s not afraid to haggle.
It’s not uncommon for me to sit on a mall bench ...read more
War, Debt, and Inflation from the Past to the Future
Jan 17th, 2008 | By Christopher Hancock | Category: International, Macroeconomics
Austrian novelist, playwright, journalist and biographer Stefan Zweig witnessed first-hand the summer of 1914. “It was the war of an unsuspicious generation,” Zweig wrote, “and the greatest peril was the inexhaustible faith of nations in the single sided justice of their cause.”
The proud Venetians surrendered their Austrian Crown, circulated in ...read more
Invest in China’s Version of the 1896 Dow
Jan 11th, 2008 | By Christopher Hancock | Category: Commodities, International
On May 26, 1896, Charles Dow, Wall Street Journal editor and co-founder of Dow Jones & Co. Inc., compiled an index to track the performance of the American stock markets. The original index included 12 of America’s most fundamental industrial stocks.
America’s industrial revolution required the basic commodities and raw materials ...read more

