Bailouts of the banking system create social tension. Eventually, bailouts introduce so much risk into the system that failures and bailouts become too costly for the society to bear, government creates draconian rules trying to prevent them in future, which in turn kills innovation and the formation of new businesses, and the result is a stagnating economy.

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WHO AM I: Vitaliy Katsenelson was born in Murmansk, Russia, and immigrated to the United States with his family in 1991. After joining Denver-based value investment firm IMA in 1997, Vitaliy became Chief Investment Officer in 2007 and CEO in 2012. Vitaliy has written two books on investing and is an award-winning writer. Known for his uncommon common sense, Forbes Magazine called him "The New Benjamin Graham." He's written for publications including Financial Times, Barron's, Institutional Investor, and Foreign Policy. Vitaliy lives in Denver with his wife and three kids, where he loves to read, listen to classical music, play chess, and write about life, investing, and music. Soul in the Game is his third book and first non-investing book.

Please read the following important disclosure: https://contrarianedge.com/disclosure/

Silicon Valley Bank (SVB) may be an extreme example, but it gave us a preview at a 100x magnification of what many banks are facing today. SVB is also a sad demonstration of how volatile deposits are. SVB was awash with deposits from its customers, mainly startups, raising money in the venture capital boom. 

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🎙 Check out my weekly podcast, The Intellectual Investor. https://investor.fm/

📚 GET MY BOOKS

Soul in the Game -  https://tinyurl.com/yzh486ep 

The Little Book of Sideways Markets - https://tinyurl.com/4sdbr5f2

Active Value Investing - https://tinyurl.com/ywfczy8u

MY KEY LINKS

🌍 My website/blog - https://contrarianedge.com/

🔗 Business Website - https://imausa.com/

🐦 Twitter - https://twitter.com/vitaliyk

📸 Instagram - https://www.instagram.com/vitaliyk/

WHO AM I: Vitaliy Katsenelson was born in Murmansk, Russia, and immigrated to the United States with his family in 1991. After joining Denver-based value investment firm IMA in 1997, Vitaliy became Chief Investment Officer in 2007 and CEO in 2012. Vitaliy has written two books on investing and is an award-winning writer. Known for his uncommon common sense, Forbes Magazine called him "The New Benjamin Graham." He's written for publications including Financial Times, Barron's, Institutional Investor, and Foreign Policy. Vitaliy lives in Denver with his wife and three kids, where he loves to read, listen to classical music, play chess, and write about life, investing, and music. Soul in the Game is his third book and first non-investing book.

Please read the following important disclosure: https://contrarianedge.com/disclosure/

This is part one of the winter seasonal letter I wrote to IMA clients, sharing my thoughts about the economy and the market. I tried something I’ve never done before. Instead of conveying my message through storytelling, I tried to compress my thoughts into short sentences. I summarized some 50,000 words into about 1,000.

📩 Sign up for my free weekly email newsletter https://contrarianedge.com/signup-for-articles/

🎙 Check out my weekly podcast, The Intellectual Investor. https://investor.fm/

📚 GET MY BOOKS

Soul in the Game - https://tinyurl.com/yzh486ep 

The Little Book of Sideways Markets - https://tinyurl.com/4sdbr5f2

Active Value Investing - https://tinyurl.com/ywfczy8u

MY KEY LINKS

🌍 My website/blog - https://contrarianedge.com/

🔗 Business Website - https://imausa.com/

🐦 Twitter - https://twitter.com/vitaliyk

📸 Instagram - https://www.instagram.com/vitaliyk/

WHO AM I: Vitaliy Katsenelson was born in Murmansk, Russia, and immigrated to the United States with his family in 1991. After joining Denver-based value investment firm IMA in 1997, Vitaliy became Chief Investment Officer in 2007 and CEO in 2012. Vitaliy has written two books on investing and is an award-winning writer. Known for his uncommon common sense, Forbes Magazine called him "The New Benjamin Graham." He's written for publications including Financial Times, Barron's, Institutional Investor, and Foreign Policy. Vitaliy lives in Denver with his wife and three kids, where he loves to read, listen to classical music, play chess, and write about life, investing, and music. Soul in the Game is his third book and first non-investing book.

Please read the following important disclosure: https://contrarianedge.com/disclosure/

I recently traveled to a Swiss investment conference. The beauty, safety and serenity of Switzerland all come with embedded costs which I uncover in discussing the contrasts of India vs Switzerland, and seeing a country as a visitor vs a resident.

You can read this article online here: https://contrarianedge.com/hidden-costs-of-living-in-switzerland/

The Real Country of Contrasts: Our Unforgettable Trip to India article link: https://contrarianedge.com/the-real-country-of-contrasts-our-unforgettable-trip-to-india/

The words we use matter more than we think. While we have a tendency to use words that can inflame a situation, make it worse or more extreme, by deliberately choosing our words, we can craft our perception of things, people, and events. I explain how.

You can read this article online here: https://soulinthegame.net/false-sophistication-of-sophists/

This is a free chapter from Soul in the Game: https://soulinthegame.net/

In the hopes of gaining and keeping perspective on what truly matters over the Holidays, Vitaliy draws an excerpt from Seneca on treating our most precious commodity, time, with the respect it deserves.

You can read this article online here: https://soulinthegame.net/each-day-is-a-separate-life/

This is a free chapter from Soul in the Game: https://soulinthegame.net/

Vitaliy and his daughter Hannah visited India for a CFA society event.

The journey opened their eyes to the contrasts between the West and the sub-continent both in culture and India's potential investment merits.

You can read this article online here: https://contrarianedge.com/the-real-country-of-contrasts-our-unforgettable-trip-to-india/

Soul in the Game link: https://soulinthegame.net/

See More Clearly With These Two Mental Models article link here: https://contrarianedge.com/see-more-clearly-with-these-two-mental-models/

Vitaliy gives an update on IMA's investment in cable company Charter. After being punched in the face by a declining stock price, Vitaliy and his team did an extensive amount of additional research on the business and industry.

He believes IMA's initial research was correct and will be proven out in time. Here's why.

You can read this article online here: https://contrarianedge.com/why-were-confident-in-our-charter-investment/

Please read the following important disclosure: https://contrarianedge.com/disclosure/

Vitaliy outlines how the conditions are ripe for a sideways market, something he knows about, having written two books on the subject.

He shares how to invest in sideways markets, and what to expect overall.

You can read this article online here: https://contrarianedge.com/stock-market-roller-coaster-prepare-for-a-decade-or-two-of-disappointing-returns/

Please read the following important disclosure: https://contrarianedge.com/disclosure/

Vitaliy is embarrassed to admit that he has at times felt Schadenfreude, "shameful joy", upon seeing growth stocks decline.

But his stoicism and decency quickly kicked in, and he banished this destructive feeling. Here's how.

You can read this article online here: https://contrarianedge.com/why-were-not-celebrating-the-vindication-of-our-investing-principles/

Please read the following important disclosure: https://contrarianedge.com/disclosure/