Investing
Stock Market Valuation Tool Now Indicates Undervalued
Not since October of 2010 has the S&P 500 been this low. The stock market valuator has been showing “Overvalued” until this past week. Right now, it is indicating that the S&P 500 is undervalued by 1.56%. If the growth rate is adjusted downward to 7%, then the S&P 500 is getting close to the [...]
Socially Responsible Investing Pitfalls
The premise for socially responsible investing sounds great in theory but in real life it may prove to be difficult to achieve. Gambling, alcohol, tobacco and military investments all come to mind when thinking about types of investments to avoid for the socially responsible investor. These are generally considered bad investments for the socially responsible [...]
Low Rates Are Not Here to Stay
The low interest rates of today may be no more long lasting than the 0% interest credit card intro offers. For many, the stock market is an attractive alternative to paying off low interest mortgage debt. After all, if someone can invest and get 6-12% in the stock market, why would someone want to pay [...]
In Search of the Perfect Business
Finding the perfect business or industry is far from simple. Many of yesterdays so called winners are todays dogs. Here is a list of some of the technology ones. AOL, Yahoo, and Myspace. All of these companies were once profitable companies. Broadband killed AOL which they were not prepared for. Google beat out Yahoo as [...]
Gold as an Investment?
As the uncertainty in the US economy continues, many people are looking to gold as an investment and hedge against inflation. Is gold a reasonable investment opportunity? Right now gold is a special opportunity that is very similar to the tulip craze, real estate boom and dot-com bubble. Gold has went from a price of [...]
The New US Stock Market Bubble
Much money has been moving back into the stock market which is troubling. It was to be expected that many investors would jump into the market near the March lows to pick up stocks at low prices. However, now many stocks are priced very high considering the poor fundamental outlook for the future. Many of [...]
The Internet Model and Taxes
Using a hypothetical example and assuming that the internet business model could have as great of an impact on other areas of the US economy in the same way as how it has devestated newspapers, what would happen to the economy and public policy? Job loss is the first thing that comes to mind. If [...]
Will the Jobs Come Back?
The booming housing market helped to employ a large portion of the economy. Housing money went to building materials, construction labor, real estate companies, builders, and banks. Around all of these companies were smaller companies providing products and services. These jobs were there because of the original lending for homes. Home equity loans provided a [...]
Preparing For the Upcoming Inflation With Own CPI Index
The US continues to run budget deficits and will most likely continue this for years. Those who own US bonds are not going to be happy about this. In exchange for purchasing the bonds, the goverment will be paying back in dollars that are worth less due to the huge increase in the money supply [...]
Is Green Energy the Next Big Bubble?
Obama’s plan is to reduce oil consumption by making buildings more efficient through insulation, energy efficient CF light bulbs and by other means. The other part of the plan is to produce energy domestically through solar and wind. This second part of the plan may lead to speculation as seen during the internet bubble and [...]