Investing Basics

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

When you’re the leader of the free world, you can make a few investment mistakes and still do pretty well.#-ad_banner-# You are guaranteed an annual pension of just under $200,000 for the rest of your life and can make millions more giving speeches. Former President Bill Clinton made $13.4 million for the 54 speeches he gave in 2011, almost a quarter of a million each on average. In addition to the lecture circuit are the book deals, board seats and any number of other perks that… Read More

When you’re the leader of the free world, you can make a few investment mistakes and still do pretty well.#-ad_banner-# You are guaranteed an annual pension of just under $200,000 for the rest of your life and can make millions more giving speeches. Former President Bill Clinton made $13.4 million for the 54 speeches he gave in 2011, almost a quarter of a million each on average. In addition to the lecture circuit are the book deals, board seats and any number of other perks that come from those four (or eight) years of leadership. With this kind of potential income, who cares if you make a few extra percent on your portfolio? Then There’s The Rest Of Us… Unless you are one of the lucky few who have this kind of potential income, you are going to need to manage your nest egg and seek higher returns. But with bonds yielding next to nothing, gold and commodities out of favor, and many sectors of the… Read More

Intermarket relationships, rules that explain how one market affects another, work in the long term and unfold over months. For example, stocks and bonds are competing for investment dollars. If interest rates move up, bonds may become more attractive than stocks for some investors and stock prices could fall as investors move their dollars from one market to… Read More

Intermarket relationships, rules that explain how one market affects another, work in the long term and unfold over months. For example, stocks and bonds are competing for investment dollars. If interest rates move up, bonds may become more attractive than stocks for some investors and stock prices could fall as investors move their dollars from one market to the other.#-ad_banner-# One of the more reliable relationships is between lumber and homebuilders. New-home sales are strong right now, but lumber prices tell us that weakness probably lies ahead. Months before a home is built, the builder will place orders to buy lumber. Strength in the lumber market should precede strength in homebuilding, while weakness in lumber signals a potential slowdown in homebuilding. That’s where we are now, with lumber in a bear market… Read More

Intermarket relationships, rules that explain how one market affects another, work in the long term and unfold over months. For example, stocks and bonds are competing for investment dollars. If interest rates move up, bonds may become more attractive than stocks for some investors and stock prices could fall as investors move their dollars from one market to… Read More

Intermarket relationships, rules that explain how one market affects another, work in the long term and unfold over months. For example, stocks and bonds are competing for investment dollars. If interest rates move up, bonds may become more attractive than stocks for some investors and stock prices could fall as investors move their dollars from one market to the other.#-ad_banner-# One of the more reliable relationships is between lumber and homebuilders. New-home sales are strong right now, but lumber prices tell us that weakness probably lies ahead. Months before a home is built, the builder will place orders to buy lumber. Strength in the lumber market should precede strength in homebuilding, while weakness in lumber signals a potential slowdown in homebuilding. That’s where we are now, with lumber in a bear market… Read More

Every down day brings calls of a market top. But based on a rare buy signal, there appears to be very little risk in the S&P 500 at this time. S&P 500 Shrugs Off Japan’s Plunge On Thursday morning, traders in the United States awoke to news of a sell-off in Japan that drove the benchmark index for the country down by more than 7%. After a weak open, U.S. Read More

Every down day brings calls of a market top. But based on a rare buy signal, there appears to be very little risk in the S&P 500 at this time. S&P 500 Shrugs Off Japan’s Plunge On Thursday morning, traders in the United States awoke to news of a sell-off in Japan that drove the benchmark index for the country down by more than 7%. After a weak open, U.S. stock markets recovered and saw only small losses at the close. The ability to ignore bad news is generally bullish for the stock market. Although SPDR S&P 500 (NYSE: SPY) lost 0.98% last week, the market still looks strong.#-ad_banner-# One reason to be bullish is a relatively unknown indicator that seldom offers trading signals. The economy alternates between contraction and expansion in a continuous business cycle. This cycle impacts… Read More

Every down day brings calls of a market top. But based on a rare buy signal, there appears to be very little risk in the S&P 500 at this time. S&P 500 Shrugs Off Japan’s Plunge On Thursday morning, traders in the United States awoke to news of a sell-off in Japan that drove the benchmark index for the country down by more than 7%. After a weak open, U.S. Read More

Every down day brings calls of a market top. But based on a rare buy signal, there appears to be very little risk in the S&P 500 at this time. S&P 500 Shrugs Off Japan’s Plunge On Thursday morning, traders in the United States awoke to news of a sell-off in Japan that drove the benchmark index for the country down by more than 7%. After a weak open, U.S. stock markets recovered and saw only small losses at the close. The ability to ignore bad news is generally bullish for the stock market. Although SPDR S&P 500 (NYSE: SPY) lost 0.98% last week, the market still looks strong.#-ad_banner-# One reason to be bullish is a relatively unknown indicator that seldom offers trading signals. The economy alternates between contraction and expansion in a continuous business cycle. This cycle impacts… Read More

Practically every zoo has a giraffe, and they all look alike: long neck, tan spots, four legs. Until around 2007, scientists thought there was just one kind of giraffe. But then a team of geneticists at UCLA discovered that there are actually at least six and maybe even 11 different species of giraffes. Those different species, it turns out, really are different, and some are quite rare — a finding that has helped scientists and conservationists rearrange their giraffe priorities. It just goes to show the dangers of thinking “They’re all the same.”#-ad_banner-#… Read More

Practically every zoo has a giraffe, and they all look alike: long neck, tan spots, four legs. Until around 2007, scientists thought there was just one kind of giraffe. But then a team of geneticists at UCLA discovered that there are actually at least six and maybe even 11 different species of giraffes. Those different species, it turns out, really are different, and some are quite rare — a finding that has helped scientists and conservationists rearrange their giraffe priorities. It just goes to show the dangers of thinking “They’re all the same.”#-ad_banner-# It’s a common misperception investors have when it comes to stocks, too: Many people think a stock is a stock is a stock. But actually, there are several different kinds, and you ought to know how to tell them apart so that you too can get your priorities straight. Here are five types of stocks to know about before you invest. Common Stock Common stock is the most popular kind… Read More