Angeles Advisors | Blog

  • Blog posts are written by Angeles' CIO Michael Rosen

    Michael has more than 30 years experience as an institutional portfolio manager, investment strategist, and investment consultant.


Toes in the Sand


For me, and I think I speak for everyone on the planet, the feeling of warm sand between the toes is one of life’s great pleasures. And for virtually everyone on the planet, including those of us who look at a beach every day (ok, I may be rubbing it in), we don’t give sand much thought: it’s just there. But sand is more than pretty beaches; it’s big business. And it’s gotten to be even bigger business with the advent of the Shale Revolution. That’s because a lot of subsurface rocks that contain oil and gas lack permeability, which Read More

Not Dead Yet


According to the National Bureau of Economic Research (NBER), the self-acclaimed arbiter of economic debate in this country, the current economic expansion began in June 2009, meaning we just passed eight years of uninterrupted growth. This is now the third longest period of economic growth since the Civil War (see chart below). In May next year, we will pass the second-longest expansion, and if we can get to the summer of 2019 without a dip, we’ll have a new record. Will we get there? And does it matter? The answers are, probably and yes. To answer the first part, we Read More

Humans! What Are They Good For?


It looks like the world is turning against humans. I’ve talked before about the rise of robots in manufacturing (2016 Angeles Independent School Endowment Symposium…see graph below). But robots are taking on increasingly more complicated tasks. We may be comfortable with robots assembling our cars (although the UAW may take exception), but most us will soon be forced to shift our perception of our family physician from Robert Young (aka, Marcus Welby, MD, which is showing my age) to Da Vinci (no, not Leonardo…see photos below). The Rise of Robots, The Descent of Humans It seems that investors, too, have Read More

Beware Parabolas and Populists


In scouring the world for investment opportunities, the chart above caught my attention. It shows the year-to-date performance of the Caracas stock exchange, more than tripling from around 30,000 to over 100,000 today. Did we miss a chance to make a lot of money? Well, no. The stock market has tripled because the currency has lost all value. The official USD exchange rate of the bolivar is 10:1; 10 bolivares buys 1 US dollar. But the official exchange rate is a fantasy: the actual exchange rate is 7,500:1 (see graph below from That’s a 75,000 percent depreciation from the Read More

Economics in Action


The intersection of supply and demand determines price and quantity: there is no more fundamental principle of economics (see graph below). We rarely see this principle in action because prices for most consumer goods and services change little week-to-week. All that means is the market maintains a constant equilibrium (which is set by the price) of supply and demand: either there is little change in supply or demand, or the changes are very modest, and market forces adjust quickly to maintain that equilibrium. Commodity prices are much more volatile than consumer goods prices, meaning there are frequent “shocks” either to Read More

Job Growth is Falling. The Sky is Not.


Today’s jobs report was disappointing: only 138,000 net new jobs created in May (the consensus had it pegged at 182,000), another 66,000 lost in revisions to the prior two months, the three-month average is trending lower with declines across all industries. Oh no! Treasury yields plunged today to the lowest levels since November, erasing all of the move following the election. Let’s look at the employment data more closely. The first graph below shows the monthly change in non-farm payrolls over the past five years. The series is volatile, and the May print is below the average of this period, Read More

Hope and Reality


Why is everyone so happy? Well, maybe not everyone, but a lot of people are as optimistic as they’ve been in a long while. Start by looking at consumer confidence, as collated by the Conference Board below. Confidence is at the highest level in the past five years (see graph below); in fact, confidence is only a little shy of its all-time peak in September 2000 (which, ominously, marked the top of the great Internet bubble). Conference Board Survey of Consumer Confidence, 2011-2017 One finds the same results in nearly all the surveys, from consumers to small businesses to baseball Read More

Chasing the Red Baron


You can’t eat relative returns is an old aphorism. It sounds like it could come out of Poor Richard’s Almanac (Benjamin Franklin), and I’m not really sure of its origin, but it means that we (investors) ought to be focused on the absolute growth of our money, not on its growth relative to some benchmark or peers. When we buy groceries (or make grants or award scholarships or cut pension checks), we spend (“eat”) actual dollars, not an amount relative to our performance against an index. Too often, we fall into the trap of trying to copy the strategies of Read More

Non-Zero Sum


There are prominent voices (and tweets) urging us to pull back, dig in, and lock the gate. This rising chorus of nationalism and protectionism sees a dangerous world intent on our demise or destruction. We are assured we will be safe behind our wall, in our bunkers, while others can sort out the consequences of the chaos beyond our shores. Our enemies hate us (which is why they’re our enemies), our friends don’t appreciate us, so we first are going to protect ourselves from these threats, and then we are…well, we’ll have to see what’s next. This narrative is dangerous, Read More



It’s probably no surprise to you that I see offering world-class investment advice as a valuable service for the long-term well-being of our clients. And while I think of investing as critically important, I acknowledge that there are a few issues that may be equally, or even more, central to our long-term well-being. Love is one such area. And so, in the interest of supporting your happiness and prosperity, backed our usual analytical rigor, we offer the following guide to three important activities related to love: • How to Choose a Mate • When to Marry • What to Give Read More