Europe. Japan. And the U.S. The economies are in different cycles. As are interest rates and company earnings. Yet, since October 31st, they've tracked each other almost exactly.
In Yen terms, they've lost the same amount. In both dollar and euro terms, the difference has been negligible. So much for protecting your stock investments through diversifying in various developed countries.
Tuesday, April 8, 2008
Monday, April 7, 2008
Assuming we are entering a period of stagflation, certain investing principles apply:
1. Cash is king.
2. Buy value.
3. Buy into the recovery.
4. Invest in what you know.
5. Limit expenses.
6. Be ready to seize opportunity when it arises. Because it will arise.
2. Buy value.
3. Buy into the recovery.
4. Invest in what you know.
5. Limit expenses.
6. Be ready to seize opportunity when it arises. Because it will arise.
Saturday, April 5, 2008
Unsold Homes Tie Down Would-Be Transplants.
“Mobility opens up job opportunities… When housing is not an obstacle, more than five million men and women, nearly 4% of the nation’s work force, move annually from one place to another — to a new job after a layoff, or to higher-paying work…
Now, unable to sell their homes… tens of thousands of people… are making the labor force less flexible just as a weakening economy puts pressure on workers to move to wherever companies are still hiring…
Census Bureau: In a booming [housing] market, interstate migration reached 2.2 million people in 2006… In 2007, interstate migration plunged to 1.6 million people.” (NY Times, Apr. 3rd)
Now, unable to sell their homes… tens of thousands of people… are making the labor force less flexible just as a weakening economy puts pressure on workers to move to wherever companies are still hiring…
Census Bureau: In a booming [housing] market, interstate migration reached 2.2 million people in 2006… In 2007, interstate migration plunged to 1.6 million people.” (NY Times, Apr. 3rd)
Friday, April 4, 2008
Congress is closer to passing a mortgage relief bill...
...despite intellectual and philosophical differences among Congressional Republicans, their Democratic counterparts, and the executive branch.
Put simply: The battle royale between free market forces and government intervention continues to rage ... and intensify ... in the housing and mortgage markets.
The Fed has torn up its playbook and intervened more aggressively on Wall Street than at any time since the Great Depression. And the nation's mortgage industry is moving farther down the path of quasi-nationalization.
Put simply: The battle royale between free market forces and government intervention continues to rage ... and intensify ... in the housing and mortgage markets.
The Fed has torn up its playbook and intervened more aggressively on Wall Street than at any time since the Great Depression. And the nation's mortgage industry is moving farther down the path of quasi-nationalization.
Thursday, April 3, 2008
Funds
Investors pulled $100 billion dollars out of equity funds around the world last quarter. Traditional stock and income funds were hardest hit.
A little new money trickled in, most moved around. And where did it go? To cash and near-cash like money market funds.
Commodities funds also enjoyed triple the inflows they had a year ago. But the surprising thing given that investors were fleeing a risky market was that high-risk, high-cost hedge funds got a good chunk of extra money.
A little new money trickled in, most moved around. And where did it go? To cash and near-cash like money market funds.
Commodities funds also enjoyed triple the inflows they had a year ago. But the surprising thing given that investors were fleeing a risky market was that high-risk, high-cost hedge funds got a good chunk of extra money.
Wednesday, April 2, 2008
Game Over?
$1.19 trillion is owed to the Federal Reserve!!
Remember, the Fed is a private corporation. A large portion of its owners are also elitist banking foreigners.
If you add what is owed to the Fed with what is owed to commercial banks, you get the grand sum of $3.65 trillion. This is 34 percent of the total borrowed amount of $10.73 trillion. The Fed's $1.19 trillion is 11 percent of the total borrowed. Nice pay for six years of "work," no?
What exactly did the Fed do to earn this money? They didn't even have to go to the trouble of printing it. They just make digital entries on the master computer and the "money" appears.
They "monetize" political promises (lies), cow chips, failed mortgages, or whatever they choose. We owe them this sum! That, my friend, makes you a serf. Pay up.
At some point the national debt is similar to the debts owed by a bankrupt individual on a last-minute spending spree. Right before the plastic is cut into pieces. Broke is broke - might as well go out in style. Maybe the U.S. can find further funding to continue exponentially expanding its debt, but that is exceedingly unlikely.
Someone (individuals, institutions, or nations) has to continue loaning money to the U.S. When it becomes blatantly obvious to all that the money cannot be repaid, the loans will stop. There will be demands for repayment of existing loans. Game over.
Remember, the Fed is a private corporation. A large portion of its owners are also elitist banking foreigners.
If you add what is owed to the Fed with what is owed to commercial banks, you get the grand sum of $3.65 trillion. This is 34 percent of the total borrowed amount of $10.73 trillion. The Fed's $1.19 trillion is 11 percent of the total borrowed. Nice pay for six years of "work," no?
What exactly did the Fed do to earn this money? They didn't even have to go to the trouble of printing it. They just make digital entries on the master computer and the "money" appears.
They "monetize" political promises (lies), cow chips, failed mortgages, or whatever they choose. We owe them this sum! That, my friend, makes you a serf. Pay up.
At some point the national debt is similar to the debts owed by a bankrupt individual on a last-minute spending spree. Right before the plastic is cut into pieces. Broke is broke - might as well go out in style. Maybe the U.S. can find further funding to continue exponentially expanding its debt, but that is exceedingly unlikely.
Someone (individuals, institutions, or nations) has to continue loaning money to the U.S. When it becomes blatantly obvious to all that the money cannot be repaid, the loans will stop. There will be demands for repayment of existing loans. Game over.
Tuesday, April 1, 2008
The New Exurbs
The new exurbs are typically three to four hours (or more) from major metro areas. They have access to clean water and dependable utilities. The new exurbs are typically not an easy commute to a big city. The new exurbs are not the suburbs!
The new exurbs have an educated population that is generally tech-literate. There is typically a concentration of ex-corporate professionals and entrepreneurs.
The new exurbs tend to have quality restaurants, small museums, and entertainment (but obviously on a smaller scale than in the big cities). And in the best-case scenario, there will be a private or municipal airport nearby.
The new exurbs are almost always clean, quiet, and scenic, and often border national or state parks.
Some examples of the new exurbs in the U.S.:
Telluride, CO
Laconia, NH
Coeur d'Alene, ID
Sedona, AZ
Hilton Head Island
Jackson Hole, WY
Marshalltown, IA
The new exurbs have an educated population that is generally tech-literate. There is typically a concentration of ex-corporate professionals and entrepreneurs.
The new exurbs tend to have quality restaurants, small museums, and entertainment (but obviously on a smaller scale than in the big cities). And in the best-case scenario, there will be a private or municipal airport nearby.
The new exurbs are almost always clean, quiet, and scenic, and often border national or state parks.
Some examples of the new exurbs in the U.S.:
Telluride, CO
Laconia, NH
Coeur d'Alene, ID
Sedona, AZ
Hilton Head Island
Jackson Hole, WY
Marshalltown, IA
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