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Comstock Partners, Inc. analyzes economic and financial conditions from a long-term macro-economic perspective and makes adjustments based on cyclical and shorter-term considerations. In pursuit of its goals, the firm invests in various asset classes including domestic and foreign stocks, bonds, currencies and derivatives including indices and options. For the Capital Value Fund, Comstock Partners can buy or sell short and make use of leverage in order to maximize returns under various market conditions. In effect, we believe our operation resembles a modern-day hedge fund in its scope of activities.

Economy

Currency Wars will only get worse

Comstock Partners Feb 15, 2013

When massive private and public sector debts result in a credit collapse and recession, the efforts to pare down the debt is deflationary. Measures to inflate our way out of the situation are likely to fail as households are attempting to…

Political Economy

The Disastrous Consequences Of Not Raising The Debt Ceiling

Comstock Partners Jan 11, 2013

As we face another brutal fight over the federal debt ceiling at a time when the economy still remains fragile, the stock market is oddly complacent. Even if the debt ceiling crisis is resolved, the result would be some combination of…

Political Economy

The Difficult Part of US Fiscal Negotiations Is Still Ahead

Comstock Partners Jan 4, 2013

The explosive market rally following the fiscal cliff agreement was based more on what didn't happen than what did. What didn't happen was the implementation of automatic tax increases and spending cuts that would have shaved about 5% off…

Political Economy

The Deficit Did Not Cause The Recession; The Recession Caused The Deficit

Comstock Partners Dec 4, 2012

The real takeaway, however, is that the solution to the fiscal cliff problem involves some combination of tax increases and federal spending cuts. To the extent that at least some of it is front-loaded into 2013, which is likely, the result…

Markets

Fed, ECB Can Promise, But Can’t Deliver

Comstock Partners Aug 2, 2012

Like Pavlov's dog, the market is conditioned to rise whenever investors see the possibility of central bank moves toward ease. This is true whether we are talking about the Fed or the ECB. The problem is that we have been gradually moving…

Economy

Evidence of Coming Recession Is Overwhelming

Comstock Partners Jul 20, 2012

We first noticed the first signs that the economy was beginning to soften about three months ago. Now the evidence of a slowdown has become so overwhelming that it is difficult to avoid the conclusion that we are headed for a recession. We…

Economy

The Global Slowdown Will Accelerate

Comstock Partners Jun 29, 2012

Comstock Partners argues that slowing growth as well as deficit and debt problems in the Eurozone, U.S., China and the emerging nations increases the odds of a deflationary global recession and a renewed down leg in the ongoing secular bear…

Markets

The growing optimism on housing is not justified

Comstock Partners Apr 20, 2012

The bullish argument that houses are now generally affordable also does not hold up on closer examination. As we have repeated ad infinitum the average household has too much debt and is in the midst of deleveraging rather than taking on…

Markets

Why Valuation Doesn’t Insure Against A Significant Market Decline

Comstock Partners Apr 6, 2012

Given a clearly overbought market, the re-emergence of Europe's sovereign debt problem and the Fed reducing the imminence of QE3, even the bulls concede that a correction is likely. Overall, however, investors remain optimistic, and are…

Markets

Fixation with QE3 Tells You The Market Sweet Spot Is Ending

Comstock Partners Mar 30, 2012

A growing number of indicators suggest that the market is running out of steam. Equities have been in a temporary sweet spot where investors have been factoring in a self-sustaining U.S. economic recovery while also anticipating the…