I pride myself on maintaining emotional detachment when I invest. Markets are emotional and tend to overreact, and when they do, the levelheaded among us use it as an opportunity. As Warren Buffett famously said, the secret to his success is being greedy when others are fearful and fearful when others are greedy. With all of that said,…
The 2% target is low enough that the household frogs in the kettle of hot water never realize they’re being boiled alive because the increase is so gradual. A comment by correspondent David C. suggested the importance of demonstrating the impoverishing consequences of central banks reaching their 2% inflation target. David observed: “That central bankers aren’t all…
Higher yield usually means greater risk. Frequently, investors are mesmerized by high-yield bonds and ignore the reason for the high yield. Higher yield bonds mean that there is a greater chance the bond might default. Investing in a bond fund or an exchange-traded fund diversifies away some of the risk, but won’t completely protect you…
Gold edged towards a seven-week high on Thursday as a plunge in global equities and sell-off in the dollar burnished the metal’s safe-haven appeal. Spot gold had risen 0.2 percent to $1,229.30 an ounce by 0034 GMT, not far from a seven-week high of $1,238.20 reached earlier this week. U.S. and European equity markets fell…
Andreas Halvorsen‘s Viking Global is a fund with great returns over its 15-years old history. Since its foundation, Viking’s flagship fund returned on average 19% per year. For 2013, its return reached 23%, while during the first half of 2014, the flagship fund returned around 6%. Mr. Halvorsen also manages a long-only fund that returned 38% last…
Did you know that 65 percent of all children in the United States live in a home that receives aid from the federal government? We live at a time when child poverty in America is exploding. Yes, the U.S. economy is experiencing a temporary bubble of false stability for the moment, but even during this…
After months of hard-fought negotiations over agency dollars and policy provisions, the net result is a 1,600 page bill released last night.The deal was announced late yesterday after Democrats accepted Republican demands to undo some regulations including the banking provision that will allow the trading banks to deal in derivatives again in subsidiaries will full insurance from…
DOW – 268 = 17,533SPX – 33 = 2026 NAS – 82 = 4684 10 YR YLD – .05 = 2.17%OIL – 2.64 = 61.18 GOLD – 6.30 = 1227.10 SILV – -.05 = 17.16 Well, that was ugly. This is why we enjoy milk and cookies while we can. We’ve seen a lot of…
Due to the trigger happy nature of children who might not fully appreciate or understand the value of money, chances are there have been many parents who were greeted by bill shock upon opening the bill of their credit cards. In fact too often have we heard stories of how kids have managed to rack…
For the first time in almost 3 years, the ‘market’ is fighting the PBOC in the FX markets. The last month has seen USDCNY rise almost 9 handles to as high as 6.21 (the weakest CNY in 5 months). At the same time, the PBOC’s official ‘fix’ of CNY has been strengthened to below 6.12…
