Dec 18 2008
Much of the public is frustrated at how the government runs the country, and as for the Democrats or the Republicans, the main difference is in the spelling. For a clear headed explanation of government stimulus, see the below video.
Dec 15 2008
If you are a long-term investor who is wondering when the economic and stock market recovery will begin, then you need to click here to watch this short video from economist Brian Wesbury.
Update: Here is more sound insight from First Trust.
Dec 09 2008
It’s because of the insane level of derivatives being trading throughout the global financial markets - about $700 trillion. There’s not much new here for me to comment other than I still view derivatives as THE biggest threat to owning dollar-based assets in long term positions.
However, if this is a new topic for you, the below piece from 60 Minutes does a nice job of explaining what derivatives are and how they work, in common sense language:
Even if the derivative house of cards does not collapse any more than it already has, I am no less long term bearish on the dollar and other currency-based investments. Eventually the American greenback will return to its slide in buying power and investors that own hedge positions will be thankful.
My favorite method to hedge against a devaluing currency is with gold - both through direct ownership in gold bullion and by owning shares of a gold-mining mutual fund. So if you have concerns over the Fed’s devaluation of our currency then this is where you should be.
To put the Fed’s actions in perspective, consider this: Eight years ago there were just over $5 trillion circulating through the system. At last check this number had risen to nearly $9 trillion - almost a double in the quantity of paper money. That action, historically, spells inflation.
Recently I returned from Europe to see firsthand how our friends across the pond were being impacted by this economic environment. Not surprisingly, things seem very similar to life in the States. The shopping centers were busy, the restaurants were full, and the only negatives I witnessed were in regard to the financial industry and media’s drumbeat of doom and gloom.
Purchasing power parity tells me that the dollar is currently undervalued compared to the euro and the fact the stock market is rising in the face of negative economic data tells me there is a very good chance that we saw the market bottom back in November.
Of course there are no guarantees but what I do know is that the economic news will continue to worsen but the upside to ownership investments look a whole lot more promising than the downside.
As of now, it looks like by mid-2009 we will be facing a rapidly improving economy and that’s why the stock market has been rising in the face of all the current bad news.
Dec 05 2008
Many folks have called me this year worried about paying higher taxes in the future and have asked about “tax havens.”
Below is an excellent report about that by Dan Mitchell at the CATO Institute on behalf of the Center for Freedom and Prosperity.
Nov 21 2008
Check out this fascinating video of a new Ford plant in Brazil from DetNews.com.
Now you will see why auto manufacturers want to get out of the U.S. and away from the UAW. What are the chances union leaders would allow such a plant built here in the States? Without a dramatic overhaul to their operations, my guess is zero.
Oct 29 2008
Michael Cannon, a previous guest on our radio show and the Director of Health Policy Studies at the Cato Institute, talks about the problems with Obama’s health care plan:
Oct 20 2008
Oct 08 2008
We are currently in the grip of a temporary deflationary panic but based on the evidence I see from the Federal Reserve and its growth of the money supply, the long term trend is still inflationary and owners of tangible (non dollar-denominated) assets will be the winners at the end of this shakeout. It’s disconcerting to see our portfolio values drop but being a diversified owner is still the best place to be if real world safety is your goal.
Bottom line: I’m a buyer and not a seller. And now is the time to be making financial decisions with your head, not your heart.
Update: A transcript is linked below.
Sep 29 2008
Video courtesy of KETV News.
Sep 19 2008
Be sure to tune in to our radio show each week for more discussion.
Have thoughts or questions? Leave them in the comment field below.
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Aron Huddleston talks with WOWT in Omaha about what investors should be focusing on in today’s market environment:
Video used with permission of WOWT
Update: The transcript to Roland’s video can be viewed by clicking the link below.
