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Low interest rates have run their course. Now we get the crash

On Wednesday, the Federal Reserve announced the third interest rate hike since the onset of the global financial crisis.  The message is that the U.S. economy is healthy. Yes, GDP growth is less than ideal. (Real GDP expanded by 1.9% in 2016.) But job growth is strong. The unemployment rate is low, by historical standards.
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Why are employees not assets, in the balance sheet sense?

You ever hear a CEO say, “Our employees are our greatest asset”? It’s not technically true. In a colloquial sense, yes, employees help a company deliver a lot of value to customers. But in the formal, literal sense…no. Employees aren’t assets. Employees don’t appear on a company’s balance sheet. It’s all about ownership Why are
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Big oil CEO supports corporate tax reform. And this is news?

CNBC reported on Tuesday that John Watson, Chevron’s CEO, supports Donald Trump’s push for corporate tax reform. And this is news? Let’s ignore the merits of corporate tax reform. This post isn’t about politics or economics. This post is about what the financial media considers news. It’s hard for me to think about something that’s
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Humility and curiosity are rocket fuel for your career

Think about the most frustrating relationships you’ve encountered in your career. Think about the interactions that caused you the most anxiety, or frustration, or stress. What was the common thread? What traits did the other person exhibit that caused such friction? If you’re like me, the answer is arrogance and know-it-all-itude. (Yes, I think I
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Career success is built on trust. And trust is way too rare in business

Have you ever worked for someone you didn’t trust? Have you ever worked for someone who didn’t trust you? Have you ever tried to earn someone’s trust, but failed?  It happens every time you interview for a job, but leave without an offer. It happens when you try to make a sale, but can’t close
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Artificial intelligence started with the calendar and abacus

I wrote earlier this week about why artificial intelligence (AI) is such a big deal. Using Kevin Kelly’s example, I claimed artificial intelligence will have a bigger impact than electricity. My argument was that electricity helps human perform manual tasks. Artificial intelligence helps us perform cognitive tasks. Electricity makes us stronger. Artificial intelligence makes us smarter.
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Valentine's Day, and why capitalism works so well

Valentine’s Day is a somewhat despised “holiday”. It’s built around excess. It’s a manufactured, fleeting celebration of a profound emotion we spend our whole lives exploring. But Valentine’s Day is great in at least one way. It shows why capitalism works so well. I’m thinking specifically of the flower tent outside of my grocery store. With increased
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Artificial intelligence will be bigger than electricity

I hate buzz words as much as the next person. I also hate tech fads. It would make sense, then, that I despise the artificial intelligence (AI) gold rush. But I don’t. I really do buy into the AI excitement. And Kevin Kelly has a great analogy to explain my thinking. Think of artificial intelligence
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Why is Johnson & Johnson so much more valuable than Pfizer?

Earlier this week, I looked at the valuations of 5 large pharmaceutical companies: Johnson & Johnson, Pfizer, Merck, Amgen, and Eli Lilly. I was trying to get an idea of which one was the most “over-valued”. Long story short, Johnson & Johnson and Amgen are the most expensive, relative to their asset base. That doesn’t necessarily
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Which big pharmaceutical company is most overvalued?

I want to take a quick look at five large publicly-traded pharmaceutical companies: Johnson & Johnson Pfizer Merck Amgen Eli Lilly Specifically, I want to get a rough idea of how “fair” their valuations are. And I have two important caveats: Johnson & Johnson isn’t a pure pharmaceuticals company. No two of these companies overlap
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