1. The Schulte Research Report focuses on banks, bank credit, liquidity & corporate solvency.
  2. Bank credit drives economics, not the other way around. Credit flows drive P/Es.
  3. Liquidity flows determine solvency, not the other way around. Credit lines decide.
  4. Balance sheets drive stock prices, not income statements. Income is an outcome.
  5. Real estate, FX & equities are tied together by domestic credit. Credit drives value.
  6. Get the credit & liquidity trends right & the rest follows. This is what we will do.
  7. Paul Schulte developed this approach after 27 years of experience (since 1985) as
    • policy analyst;
    • investment strategist;
    • fund manager &
    • bank analyst
  8. He worked on
    • POLICY (White House NSC, Indonesian MOF and Central Bank);
    • BUY side (helping ex-Tiger Peter Early at $350 MN Big Sky in LA);
    • SELL side (CSFB, Barings, Lehman, Nomura, CCB); and
    • ACADEMIA (MBA professor at Kellogg, Stern, Columbia, UST).
  9. We know theory & practice well. Theory is important, but it must be intuitive.
  10. Research pieces are out every 10 days and WILL ALWAYS INCLUDE A TRADE IDEA.