Recovery! Albeit a Slow One
So far, the stock market correction we have witnessed in the past month appears to be normal in scope. In contrast to the "sky is falling!" mentality that prevailed one year ago, signs that our banking system would survive began last spring an overly ebullient reaction by a significant number of investors. Now that Optimists must deal with evidence of a very slow recovery, and economic ignorance on the part of many politicos, a negative reaction has set in, with the flow of new money into equities more than offset by profit taking. It appears to me that the Recovery appears to be playing out along the lines suggested by most economists, including those in government: slow, with fits and starts.
Washington Turns to the Dark Side
Washington Turns to the Dark Side
With economic recovery too slow to save Democrats running for re-election, a wholesale verbal and strategic assault on the pillars of a sound economy is underway. Despite this the stock market, a good predictor of the future, is holding up relatively well.
Sleeping Soundly with Low Volatility
I consumed two fat books on the life and investment strategies of Warren Buffet this past year, both of which improved my already considerable knowledge of his approach. Buffet sniffs at index investing, and especially at trend followers. His does the challenging work of company-by-company financial analysis. Consider that while the S&P was losing 20% over the past 10 years, [...]
Signs of Hope
UNEMPLOYMENT TOOK A SURPRISING TURN DOWNWARD WITH LAST MONTH'S REPORT RELEASED ON FRIDAY. GIVEN THE STATISTICAL MANIPULATION (SEASONAL SMOOTHING) AND REVISIONS THAT HAPPEN REGULARLY, THE REPORT IS TO BE TAKEN WITH SOME GRAINS OF SALT. STILL, WE MAY HAVE SEEN A MEANINGFUL DECELERATION IN THIS IMPORTANT NEGATIVE TREND. RISING EMPLOYMENT IS THE CORNERSTONE OF A LASTING ECONOMIC RECOVERY. THE STOCK [...]
The Rich Person’s Chance to Have a ROTH IRA
IRA ConversionsIf you're a high-income earner and haven't been able to contribute to a Roth IRA to date, you'll soon get your chance. Beginning next year, investors of all income levels will be able to convert a traditional IRA to a Roth, thereby ensuring tax-free withdrawals and no required minimum distributions in retirement. Individuals who earn too much to make [...]
Picking Your Pocket?
The Financial Times (ft.com) features a podcast that discusses a unique concept: refunding to clients the trailing commissions paid to brokers. Many investors with traditional brokerage firms may not be aware that their advisor receives Section 12B-1 fees from certain mutual funds. Should this money be refunded to you, the investor?Well,apparently in Great Britain, this is an option. Here is the [...]