Investing

Up, Up and Away!

As we discussed in a previous issue titled, “The Pension Dilemma”, the focus is bleak for the retirement bound baby boomers. The demographics are startling and undeniable. When Social Security was launched some 70 odd years ago there were 15 people working for every 1 retiree. By 2020, [...]

GOOD MARKETS GONE BAD

With all due respect to the bullion heads among us, nothing goes straight up. Except the national debt and the money supply. Although my love for rare American coins as a primary tangible for most portfolios is well known, my disdain for the bullion markets is boundless. The manipulations are well [...]

Dollar Denominated Doom!

Since March 2000, the stock market has seen some volatile movements. In 2001 we had the September 11th atrocities, which sent the markets plummeting. Then there were the scandals: Enron, Tyco, Bear Stearns, and Martha Stewart. More recently we have WorldCom, and a number of other large U.S. [...]

Those Trusty Trust Funds

I have been an active and vocal critic of Government’s handling of the trust funds earmarked for special purposes such as Social Security, the Highway Trust Fund and 168 others. In my 1996 book, The Secret World of Money, I opined that the trust funds were lakes of debt, out of sight but [...]

Trust Fund or Bust Fund?

The January 2001 GAO REPORT FEDERAL TRUST AND OTHER EARMARKED FUNDS. A1.9 The vast majority of earmarked funds take in more than their current needs. On an annual basis, this is often described as having a “surplus”. The accumulated surpluses result in these funds having a [...]

Hedge Fun Mania!

These things are dangerous. In case you don’t know, a hedge fund borrows money and makes huge bets intended to “Hedge” other positions. Many operators just make naked bets with this borrowed cash. They either win big or lose big. The real trouble comes when we have to bail them [...]

How Does this all effect your Wealth?

If you are like most folks, you have given up on the lure of big stock market gains. Most folks have moved their assets out of stocks and into the Bond and Money markets. This at a time when the Money supply is being expanded at a breakneck pace (Chart Above). Borrowing is at an all time high. [...]

Dollar cost averaging or bleeding to death

Dollar cost averaging can be a wonderful way to invest. It is a well established long-term investing method. Probably everyone in the mainstream financial media agrees with this. But you need to know why it doesn’t always work. Dollar cost averaging is the method where one puts a fixed amount [...]

Investing Based on Age

Another popular idea promoted by the mainstream financial media is that of investing based on your age. Typically these methods use specific asset allocation models. Basically, the younger you are, the higher the percentage of your assets that would be allocated to high-risk investments. The [...]

Throwing Good Money after Bad

Observing all of the volatility in the financial markets lately, many people are beginning to question their investment approach. The realization that stock markets don’t always go up and can stay in the doldrums for extended periods of time has finally hit home. Some folks have lost a [...]