The U.S. Government Accountability Office released its annual report today highlighting the amount of improper payments found in the previous fiscal year ending September 30, 2024. In it, the GAO reports $162 billion in waste, or as the reports states, improper payments in 16 agencies across 68 different programs. Approximately 84% of these improper payments ($135 billion) were the result of overpayments. The GAO estimates the total amount of improper payments since fiscal year 2003 at $2.8 trillion and the actual amount may be much higher. The GAO report states, “….improper payment estimates do not represent the full extent of…

Want some relief from all the earnings reports and the noise that comes with them? With its long track record of top-line and bottom-line growth, industry leadership position, diversified business model, and quality corporate governance, this Long Idea is positioned to grow profits for years to come. And, this stock is undervalued. The current valuation implies the company’s profits will fall 10% from current levels, thereby creating a large margin of safety and quality risk/reward. If you’re looking for hyperbolic descriptions and fanciful narratives, then you might not like this report. I’m not here to help you speculate or gamble.…

Key News Asian equities mostly followed Wall Street lower overnight, except for Mainland China and Hang Seng Tech, as the Philippines and Singapore were hit the hardest. Yesterday’s market tantrum in the US and China’s subsequent gains overnight, though Hong Kong was nearly flat overall, highlight the diversification benefits of owning China. Were investors prepared for this? Probably not. US-listed China stocks, especially internet stocks, are rallying this morning after a slump yesterday. Mainland investors were net sellers of Hong Kong-listed stocks and ETFs overnight after a record single-day inflow yesterday. President Trump is reported to be planning a trip…

Market downturns create fear, panic, and uncertainty. Yet history’s greatest investors have built their fortunes not by fleeing these conditions, but by embracing them. “What we learn from history is that people don’t learn from history,” Warren Buffett famously observed. When markets plunge, most investors forget the fundamental truth that these cycles are inevitable and temporary. Buffett and his longtime partner Charlie Munger repeatedly emphasized that they made most of their money during bear markets—not by timing the bottom perfectly, but by remaining rational when others succumbed to emotion. Mastering your emotions during market turbulence isn’t just about psychological resilience—it’s…

I recently got some reader feedback that made me realize something: When it comes to our favorite income investments—8%+ yielding closed-end funds (CEFs)—there are still a lot of misconceptions out there. It’s key that we put those right, because they’re causing some investors to miss out on CEFs, and the big (and often monthly) dividends they provide. And I know I don’t have to tell you that in turbulent times like these, high payouts like those are a lifesaver. This reader wrote in response to a recent piece I wrote about how CEFs can be better than ETFs, pointing out…

The leading bearish signs were right: The stock market is at risk of a major selloff. What to do now? Raise cash reserves for future opportunities. However, do not expect the good times to return soon. Why not? Because it takes time for widespread optimism to wash out. In spite of the reality weakening over the past weeks, bullishness remained the driving force. So, why the sudden change? Because the multiple uncertainties and negatives have finally begun to dent investors’ optimism. WSJ reveals this change of heart today (Mar. 10): Front page (A-1): “Wary Investors Play Defense In Switch to…

In trading on Monday, shares of Simon Property Group were yielding above the 5% mark based on its quarterly dividend (annualized to $8.4), with the stock changing hands as low as $165.02 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share…

Updated, March 10, 2025: This post has been adjusted to correct the spelling of UAW President Shawn Fain’s name. In Sunday’s broadcast of “This Week with George Stephanopoulos,” UAW President Shawn Fain came out in support of President Donald Trump’s tariffs. Why would a labor president of the sixth largest union in America, one that typically favors Democrats over Republicans, come out on a major network in support of the president’s policies? Here’s why. Fain’s Comments On Trump’s Tariffs and Trade Fain was asked why he supports Trump’s tariffs. Here’s what he said. “We’re in a crisis mode in this…

The Federal Open Market Committee is not expected to cut interest rates at the conclusion of their next meeting on March 19 according to fixed income markets. The key thing to watch for may be clues on the likelihood of a May interest rate cut. Currently, markets view a May cut as less likely, but possible. Statements from FOMC policymakers at the March meeting could move those expectations materially. Slim Chance Of Interest Rate Cut On March 19 Markets currently give just a 3% chance of lower short-term interest rates at the conclusion of the FOMC’s next meeting on March…

Key News Asian equities were mixed but mostly lower overnight as the Philippines and Japan outperformed while Thailand and Hong Kong underperformed. Both Hong Kong and Mainland China underperformed the region and lost some of their strong gains from last week. However, Mainland investors bought the dip in Hong Kong intensively, pouring nearly $4 billion into Hong Kong-listed stocks and ETFs on the weakness. There was also a significant rotation into value from growth stocks, continuing what was happening on Friday. However, health care held up better than most growth sectors. China’s February inflation reading of -0.7% dinted confidence in…