Investment

How Capitalism Will Save Us

December 26, 2008

Steve Forbes wrote an article back in October for his magazine. And you should read it.  I speak to so many people each week who tell me “I don’t understand what/how this all happened!” Forbes does an excellent job explaining how (and why) the economy ground to a halt over the past year.  It will [...]

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Is 1100 for the S&P 500 like the Equator?

October 18, 2008

Like crossing the equator on a ship — should buy and hold investors get some kind of recognition (or have some celebration) for crossing the line?  The S&P 500 crossed 1100 in 1998 (twice), 2001 (3X!), 2002, 2004 and 2008.  Look, when I drive around the same block twice, even I ask for directions!  Oh, [...]

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Nationalizing banks: why this will work

October 11, 2008

The Treasury announced they will begin to inject capital (money) into banks, under terms created under the bailout bill.  This article will try to walk through, in English, what this all means. As part of the bailout bill (or TARP: troubled asset recovery plan), one provision that was mostly overlooked during the congressional hearings and [...]

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Mark to the Market: what is it?

October 2, 2008

Quick history lesson: Mark-to-the-Market was a practice originally begun by futures and commodity traders in the 19th century.  Essentially, mark-to-the-market means your holdings must be “priced” every night…at the price they can be sold at. For years, many bank and investment companies carried investments at cost, or even sometimes at the face value.  This never [...]

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The Bell Curve

August 23, 2008

Recently, oil and commodities dropped 20 to 25% in four very fast weeks, catching nearly everyone off guard. But as fast as the drop took place, we start to see signs of a reversal back up. These sharp violent corrections often take place in long sustained bullish advances.What do you do if you are still [...]

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Exxon: Quarterly earnings and stock performance

August 8, 2008

Exxon reported nearly $12 billion in profits for the previous quarter recently. $12 billion! More net profits in one quarter, than ever recorded in the history of mankind. And what did the stock do? It went down. Numbers like $12 billion generate emotional responses: anger, jealousy, envy, and even pride. The media does a good [...]

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Jerry Yang, Yahoo: Should you own Media Darlings?

July 24, 2008

I’m going to paint a word picture for you. Suppose you own a stock that gave three successive buy signals last summer — in 2007. The stock ran from $28 per share up to $34 a share. Sounds good so far, right? But the stock then broke through the support line, was already on a [...]

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Governor Sarah Palin: ANWR drilling, supply and demand

June 26, 2008

Alaska Governor Sarah Palin is the youngest governor in Alaskan history — and — the first woman governor of Alaska. Palin was recently interviewed by Larry Kudlow, who is a terrific economist. Larry hosts a radio show on Saturday mornings in New York on WABC (“The Larry Kudlow Radio show”). I have called in and [...]

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Bloomberg Radio Interview

June 22, 2008

OK, no names are used in this post! But holy cow! In the midst of the sell off this week, Bloomberg Radio interviewed a money manager about the current condition of the market. The money manager went on and on making predictions about the market. How would he know anyway? Now, everyone is entitled to [...]

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Why “Average Joe” Can’t Make Money In the Market

May 10, 2008

The period we’re in now is not necessarily a “bull market” or a “bear market” but more like a structurally “fair market.” I didn’t make that up on my own — Tom Dorsey, from Dorsey Wright and Associates in Richmond coined that term. I think that makes a lot of sense. From 1982 up through [...]

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