Where to make money – Patience is key
Just like in 1998 when Asian markets and currencies collapsed, Europe might be the next best investment once the Euro falls – if it doesn’t drag on in such a way that it destroys the social structure of Europe. There is, in our opinion, another investment idea that might be more potent. This idea is […]
Dividend paying stocks – Are they a safe bet?
What a difference a decade makes. At the beginning of 2000, if you mentioned that you should be buying high dividend paying stocks at a cocktail party, you would have been laughed at as a complete idiot. Now, many pundits advocate buying mega cap, dividend paying stocks. These stocks are also being touted as a […]
Market Update
“Insanity: doing the same thing over and over again and expecting different results” – Albert Einstein Countries in Europe are trying to tackle their economic problems with announced austerity measures. Some of the proposed austerity measures include: – Increase the VAT (Value Added Tax on goods consumers buy) from 21% to 23%. – One time tax […]
The Last Dance
Who can blame the Greeks for voting to stay in the Euro. Their credit cards are maxed out and this vote will give them another card. Even if it is for a short time, it keeps the party going. The Titanic – in this case the Euro – is getting closer to the iceberg and […]
"We Don't Get Fooled Again" – The Who
Many thought that the Spain bailout would lift the markets higher, and it did temporarily. Yesterday, 10-year rates on Spanish bonds dropped from 6.20% to 6.00% in the first few hours of trading, but quickly rose to 6.48% by the close. This morning, the rate is already over 6.7%. The bond market is voting and […]
Uncertainty?
We love the pundits in the papers and on CNBC that continue to say that it is uncertainty alone that is causing the market to dip. While we do agree there are some major uncertainties out there causing angst, there are always uncertainties about the market. The major uncertainties today include Europe, the upcoming US […]
A House Of Cards Ready To Fall
Hopefully we don’t sound like a broken record, but the news from Europe is, and will be for the near future, the deciding factor for the direction of the market. The potential problems with the Euro were well known when it was created. Recent documents from Germany demonstrate that there were concerns about the Euro’s […]
April 30 – The Pain in Spain
As the chart below shows, the economic problems in Spain are wreaking havoc on the financial markets. With the 12%+ drop in the value of their stock market this month, Spain’s stock market will close at the lowest monthly close since 2003. What is more disconcerting is that their market is lower than what it […]
April 18 – Ground Hog Day – Again!
The Euro Crisis is ready to show its ugly head again. The short-term fix for Europe, which included the ECB dramatically expanding their balance sheet and banks buying sovereign debt, is starting to wear off. Over the next few weeks, there are some major European events that might spark a more significant European crisis: 1) […]
April 3 – Expect Higher Gas Prices Ahead
As we look out of our office at the BP station, we see the rapidly changing numbers as the price of gas continues higher. Not only is gasoline high, but diesel fuel is at a 31 month high. The impact of rising gas prices is as follows: 1) every one penny increase in retail gasoline […]