Investing
Value Line Performance
Value Line’s Timeliness rank is the proprietary ranking system that Value Line has developed. The Timeliness rank is from 1-5 with 1 being the best, 2 being above average, 3 being average, 4 being worse than average and 5 being the worse. Here is what Value Line states on their website: A stock portfolio of [...]
The Market is Not Always Forward Looking
I see a problem with this statement that the market is always forward looking. Recently, companies around the US have been laying off employees. Stock prices have gone lower as people expect things to get much worse. As a result, some people cut spending, sell assets and stocks. This is forward looking. However, as the [...]
The Current Crisis Is Part of a Larger Problem
The United States is made up of mostly non natives, many whom have evolved in much different environments. Europeans that have genetic variations towards cool weather have moved to the warm south western and southeastern areas of the US. Others such as Asians have moved from warm, tropical areas to dry desert areas or cool [...]
Volkswagen the Most Valuable Company in the World on Tuesday
This jump in price was caused after Porsche announced over the weekend plans to increase its stake in Volkswagen from 42.6% to 75%. With few shares outstanding (less than 5%) and a potential increase in the stock price as a result of Porche buying stock, many short sellers decided to close their positions and buy [...]
Why the $700 Billion Bailout Won’t Work
The plan is to use the $700 billion dollars of newly printed money to purchase “distressed assets.” My interpretation of this is that these are loans where the people are late at paying or show signs that they will not be able to pay the mortgage soon such as ballooning debt or lowered credit score. [...]
How the Low Savings Rate Will Effect Wages During a Recession
From 1959 to 2007 the personal savings rate reached a high of about 11% in 1985 and has fallen since then until 2006 where it has been negative since. This means that Americans are spending more than they earn. Much of this negative savings was most likely people purchasing homes and drawing on home equity [...]
Recession Resistant Stocks
Some areas of the economy will generally be less effected than others. One area are the utilitiy companies. These companies usually are local monopolies and are allowed to increase prices when their costs increase. Electricity companies and gas companies are such examples. Even during a recession people will continue to use gas and electric. They [...]
The Government’s $700 Billion Dollar Bad Behavior Awards
The american economy has historically been based on freedom and capitalism. People and companies are free to make decisions. People are free to bet that stocks will go up or down. These decisions can lead to failure or success. When a business fails, it either goes bankrupt or is purchased by another entity. What we [...]
7 Ways to Hedge Your Risk in 2008-2009
In the past when people had faith in the US dollar, simply keeping your idle funds in a checking account or money market account was fine. That was then, this is now. The dollar should continue to fall unless something changes. The US cannot continue to have trade deficits every year. The trade deficit every [...]
Where To Invest in 2008-2009
The US is in a awful financial state right now. Banks have been flooded with money from the Fed just to keep them afloat. All of this money is keeping the banks from collapsing but is also devaluing our currency. The result of this is inflation and it is rising faster than any official government [...]