Tuesday, October 20, 2020
We have less than three weeks to go before the Presidential election. So it’s time to start thinking about what effects, if any, it will have on the investment climate. No matter who wins, there is little reason for economic optimism over the short term. The lack of a coordinated Federal response to the coronavirus […]
There is no doubt there is a conflict brewing between the United States and China. But I don’t expect this fight to play out on the battlefield. Instead, it brings to mind the Cold War between the U.S. and the Soviet Union. This new cold war has one major similarity with the old one: the […]
No matter which side you favor in the upcoming U.S. Presidential election, once the results are finalized, we will live with the outcome for the next four years, at a minimum. For investors, one change to consider is Joe Biden’s plan to increase the corporate income tax rate significantly. A Biden win should provide a […]
Anyone remember when our money was backed by gold? Top of the dollar bill said “Silver certificate”? Today our bills say, “Federal Reserve Note”; called fiat currency. Fiat currency is government IOU’s (political promises). The value of fiat money is based on supply, demand and faith in the issuing government. Adam Smith said, “All money […]
Remember the saying, “Everything comes to those who wait?” Investment gurus lectured us about patience and compounding. They blared, “Save $100/month, invest at 6% and you will be a millionaire when you retire.” Current interest rates make that impossible. 25 years ago, if you bought US treasuries, the compound interest doubled your money in 12 […]
The coronavirus pandemic has put a tremendous strain on the healthcare sector. At times, emergency rooms have been overrun. Simultaneously, the healthcare industry has committed many resources to fighting the virus, meaning individuals with other illnesses and afflictions may not be getting the care they need. The healthcare industry accounts for 17% of the U.S. […]
At the local convenience store, my wife Jo handed the clerk a $5 bill and waited for her change; finally asking for it. The clerk said, “We have a coin shortage. We have to round things to the nearest dollar.” Screw that! She dug in her purse, cobbled together the correct change and demanded the […]
The U.S. Economy Is Defying Expectations Since its March 23 low, the stock market has put on a rollicking rally. Of course, this is less of a rally and more of the market making up for lost ground from a punishing fall in February and March. Once the severity of the coronavirus pandemic became clear, […]
At the start of the pandemic-triggered economic crisis, a large portion of stocks in the high-yield sectors slashed or suspended dividend payments. For example, Hoya Capital Real Estate reports that 31 of 42 mortgage real estate investment trusts (REITs) cut or suspended dividends from March through June. Other sectors, such as equity REITs, business development […]
I ran into the house crying. My grandmother grabbed some ice and pressed it to my face. I was a first-grader and had never been on a farm before. I knocked down a wasp’s nest with a broom. I got nailed, and it hurt! My grandfather looked at the welt. He smiled, and calmly said, […]
