Fluctuation is the norm. Markets fluctuate. Rainfall fluctuates. Tax collections fluctuate. Fluctuation is real but can be managed if recognized and dealt with in a disciplined manner. It is obvious that discipline is the problem. Many public sector pension funds are still distributing so called “13th checks”, reflecting the manager’s willingness to distribute the results … Continued
Consensus estimates for first quarter 2015 S&P 500 earnings suggest that we are likely to experience the first negative quarter since 2009. Price/earnings ratios are often material in projecting future stock prices. Should we be worried? Perhaps, but the outlook over the next 12 months may be more encouraging, and many investors put more weight … Continued
On April 8, 2015, Stratfor, a geopolitical research institution, reported the April 7th dispatch of the U.S. State Department Counselor, Dr. Thomas A. Shannon, Jr., to Caracas, Venezuela, following Venezuelan President, Nicolas Maduro’s public request for a meeting between ambassadors of the two countries. This meeting directly preceded the Seventh Summit of the Americas, hosted … Continued
Generally attributed to Mark Twain, this is just as true to day as it was in the 1800s. Consider California and its increasingly onerous restrictions on water usage. Water is an essential ingredient of life, and businesses require reliable and economic supplies of water in order to operate. California’s apparent inability to effectively manage its … Continued
Merriam Webster defines assumption as follows: “when planning, a fact or statement taken for granted.” My major in college was economics, but if you had told me it would be my major as a college freshman I would have scoffed. In my first economics class, Macro-Economics 101, I was disturbed that every formula contained one … Continued
In recent months, three large retailers including Wal-Mart, Target and T.J. Maxx have announced an increase in the minimum wage paid to their employees. Other retailers who also pay above the minimum wage include The Gap, Costco, IKEA, REI and Whole Foods, to name a few. For perspective, the current minimum wage is $7.25. Wal-Mart, … Continued
Since the financial crisis struck in 2008, central banks around the world have embarked upon what has become known as ZIRP, or, “zero interest rate policy.” Largely, this means keeping interest rates as low as possible so as to protect borrowers and industries dependent upon borrowing (housing, auto’s, etc.) from insolvency. Of course, a critical … Continued
Steps to take during each decade of your life: In your 20s Your 20s are a time for figuring out who you are and what you want to do with your life. Most people enter the workforce for the first time in their 20s. They move out of their parents houses and are on their … Continued
I have three twenty-something daughters – all college graduates in the past few years. The choices they make now can greatly change their future prosperity. Both their friends, and my daughters, periodically ask for my guidance to help with their early financial decisions. So, here is my advice: Debt is your greatest enemy! Taking on … Continued
As we have seen, ad nauseam, over the last several days, the Fed watching is a game that anyone can play. The almost endless, and widely diverse, opinions and predictions put forth by CNBC’s staff and commentators probably generated more heat than light. In the end, the results of the Fed’s latest meeting were essentially, … Continued
Larry Kudlow frequently advises viewers of CNBC that, “free market capitalism is the best path to prosperity.” On the whole, he has a point. Unfortunately, this is a concept that is difficult to explain in a sound-bite. Even worse, it tends to require a significant degree of political and individual effort and discipline to implement … Continued
The following paragraphs, relating to long term investing, are excerpted from Warren E. Buffet’s most recent Berkshire Hathaway Inc. letter to shareholders. “The unconventional, but inescapable, conclusion to be drawn from the past fifty years is that it has been far safer to invest in a diversified collection of American businesses than to invest in securities … Continued
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