IBJ Articles

Bursting of speculative bubbles leaves path of financial destruction Mickey Kim / June 17, 2022 Warren Buffett famously said, “Only when the tide goes out do you discover who’s been swimming naked.”  To slow rampant, persistent inflation, the Federal Reserve (“Fed”) has slammed on the monetary brakes by [...]

Rising Rates 101:  How it happened and why it matters Mickey Kim / May 13, 2022 Interest rates have surged at the fastest pace since 2009, as inflation has reached levels not seen in forty years, leading to severe indigestion for the stock and bond markets. Low interest [...]

Brace yourself, energy insecurity and $4 gas could be here to stay Mickey Kim / April 8, 2022 What a difference two years makes!  The Covid-induced economic shutdown crushed U.S. demand for oil, plummeting from 21 million barrels per day (MBPD) to 14 MBPD (down 33%).  Pouring proverbial [...]

Buffett: “Never bet against America,” even during times of war, pandemic Mickey Kim / March 18, 2022 In late February, geopolitical tensions were at the boiling point as Russian president Vladimir Putin dispatched his army to the Ukrainian border for “military exercises” and put his fighter jets along [...]

“Sudden-Death Aversion” leads to “suboptimal” choices by NFL coaches, investors Mickey Kim / February 18, 2022 On Jan. 16, 2016 the Green Bay Packers traveled to Arizona for a playoff game against the Cardinals (which had annihilated the Packers 38-8 three weeks prior). A 7-point underdog, the Packers [...]

Investors, realize 2021 was a high-return, low-volatility “unicorn” Mickey Kim / January 21, 2022 In 2021, the S&P 500 had its 12th best annual performance since World War II (posting 70 new all-time highs along the way), but investors should expect more modest returns in 2022.  To prevent [...]

Investors should resolve to “KISS” in 2022 Mickey Kim / December 24, 2021 Behavioral finance shows investors act more like the imperfectly irrational and illogical Homer Simpson than the perfectly rational and logical Mr. Spock.  It’s human nature to believe complex solutions must be superior to the simpler [...]

Zillow’s crash reveals danger of algorithms, “gamification” of housing market Mickey Kim / November 26, 2021 Purchasing a home is likely the most important investment you’ll ever make.  Unfortunately, as anyone trying to buy a house can confirm, the pandemic has turned what should be [...]

Don’t be spooked by fears of another “Taper Tantrum” Mickey Kim / October 1, 2021 September has been the weakest month for U.S. stocks going back to 1950.  The Wall Street Journal headline on September 21 brayed, “Stocks Record Biggest Slump Since Spring.”  It’s been more than 300 [...]

Will “disruptive innovation” prophet Cathie Wood’s flock need an “ARK?” Mickey Kim / September 3, 2021 Whether it’s Ali vs. Frazier in boxing (the “Thrilla in Manila”), Duke vs. Kentucky in basketball or Godzilla vs. Kong in the movies, when “titans” clash, it always makes [...]