A Threat to Global Economic and Financial Stability

January 29, 2010 There is an emerging real-estate bubble in China. Ultra-loose monetary policy in the U.S. and an over-the-top stimulus plan in China, coupled with a pegged yuan, have created optimal bubble conditions. BusinessWeek reports that in Beijing’s Chaoyang district, a typical 1,000-square-foot... Read the full story

A Guide to 2010 Investment Returns

In 2010, the monetary policies of the world’s three largest central banks are likely to play a big role in the performance of global equity markets. The vast majority of the world’s wealth—close to 80%, by some estimates—is concentrated in the U.S., Japan, and the euro area. My chart... Read the full story

How to Boost the Yield on Your Portfolio

January 22, 2010 Punishing yields of 0.05% on three-month T-bills and .85% on short-term Treasury notes are devastating to the millions of investors who rely on income from their portfolios to fund living expenses. The temptation for many of these investors is to reach for yield. Some investors are loading... Read the full story

The World’s Most Profitable Trade

January 15, 2010 In 2009, one investor earned more than the combined profits of Exxon Mobil, Microsoft, and Wal-Mart by employing a common Wall Street trading strategy-the carry trade. The carry trade is a strategy where an investor borrows money at a low rate and invests the proceeds at a higher rate.... Read the full story

Pull Your Head Out of the Sand

In a recent speech to the American Economic Association, Fed Chairman Bernanke offered his explanation of the causes of the housing bubble. Mr. Bernanke contends that easy money in the early years of this decade did not cause or even significantly contribute to the housing bubble. He also contends that... Read the full story

Harry Reid’s Resignation?

January 8, 2010 While today it appears probable that Senate majority leader Harry Reid (D-NV) will be defeated in his 2010 bid for reelection, an increasing number of Americans must in fact want to see Senator Reid resign. The Senate health-care bill transfers massive regulatory power to the federal... Read the full story

Investment of the Decade

Trust has been kicked to the curb by Washington and Wall Street. Not a smart move, as the former prepares for mid-term elections and the latter feels the effects of investors voting with their feet. Many clients and brokers have fled the big Wall Street firms for independent advisors. Washington and... Read the full story