Seriously trivial thoughts
Startling news for investors, Yellen and Congress. Analysis: The bank for central banks says current monetary policies are outdated Interesting article supporting my view that the markets are climbing due to inflow of money. Basically, more dollars chasing a fixed amount of stock shares equals higher prices. Some takeaways: “monetary policy is testing its outer limits,” …
The stock market is kind of like eBay. If there are a whole bunch of people bidding in the same auction, the final price will generally be higher than if there were just a few bidders. By the same token, if more money is invested in stocks, overall prices increases. It’s the law of supply …
Nice article on the advantages of investing in an index fund. 30 reasons to fall in love with index funds – MarketWatch. You might also want to read my recent post The Stock Markets: My Theory.
WARNING: Let me preface this blog post by saying that although I am a CPA, I am not a professional investor nor adviser. You should take all of this post with a huge grain of salt :-) * * * * * I have always wondered why the three major stock market indices (DOW, S&P and NASDAQ) …
Well, I’ve been sitting on the investing sidelines for several years and have finally decided its time. Time to move some cash into equities. Now, despite the fact that the government has merely allowed the proverbial can to be kicked farther down the road, one cannot argue that stocks have continued to rise with no …
When the Federal Reserve pulls back from its $85-billion-a-month bond-buying program due to the improving economy, interest rates will rise from their artificially low levels. It’s not an option folks. The Fed has to pull-back or risk run-away inflation. And quite frankly, rates are going to eventually rise anyways no matter what the Fed does IMHO. So …
Yeah this is anecdotal evidence, but look at the available parking spaces at 2pm on a Sunday at the Camarillo Outlet mall! Normally, you would have to hunt for a space. The mall is giant–three separate sections–and this is in the middle of the main one. Yeah, *maybe* the economy has “bottomed”, but we got …
It’s hard to understand the quick rebound in the financial markets, but it should be obvious to even the layman that you cannot truly borrow your way out of a financial bind, which is what the US government has done. We’ve only delayed the pain that *must* be felt and probably made it worse. “The …
Yup. That’s right. It is not a good time to buy a home, at least in California. “But housing prices seem to have bottomed!”, you say, and “interest rates are at historic lows!” Well, allow me to explain. Because, homes are so expensive in California, people tend to buy as much house as they can …
I think it’s pretty common knowledge that unemployment statistics are understating unemployment because they fail to count those still out of work, but have exhausted their benefits. I wonder, then, that if they extend unemployment benefits, will unemployment statistics spike as those still unemployed folks are re-added back into the system and, thus, counted again. …