Weak Real Estate Values
The following chart illustrates the close correlation in recent years between real estate investment trusts (REITs) and stocks. For my money, this makes REITs far less attractive today than did the negative or low correlations and the much higher yields of days gone by. And I also don’t see much value... Read the full story
The World’s Most Profitable Currency
Can you guess which of the world’s currencies has appreciated the most this year? If you guessed the Paraguayan guarani, you’re right. A close second was the kina. Which country uses the kina? Why, Papua New Guinea, of course! If you would have trouble spotting either of these countries on a map,... Read the full story
Pimco’s El-Erian on Greece Outlook, IEA Oil Release
Absolute Return
The next time you see an advertisement for an absolute return fund, make sure you do your homework and understand exactly what you’re getting yourself into. I’ve been digging through the 100-plus prospectus pages of the Putnam Investments Absolute Return suite of funds and can tell you the reading... Read the full story
What we’re Reading 6-17-11
Why 70% Tax Rates Won’t Work The WSJ Buffett: How inflation swindles the equity investor (Fortune, 1977) CNN Money More U.S. homes lease solar panels with no upfront costs USA Today Jiffy Lube changes 3,000-mile rule for oil changes USA Today Uncertainty Is Not the Problem The WSJ The Return of... Read the full story
Wilbur Ross on Big Labor
Are You Exposed to the Most Leveraged Bank in the U.S.?
Sorry to break the news to you, but you are exposed to the most leveraged bank in the U.S. All Americans are. Why? The most leveraged bank in the U.S. is the Federal Reserve. Yup, the Federal Reserve—the same bank that issues those green pieces of paper in your wallet. How levered is the Fed? It holds... Read the full story
Investing in Your Food Supply
You may want to start thinking and investing like a farmer. As a group, farmers’ average age continues to rise. And as their numbers decline in the coming years, the quality of our food is likely to follow suit, given the notion that more processing will pick up the slack. That’s why it’s so important... Read the full story
S&P 500 Technical Analysis Update
The S&P 500 is approaching a critical technical level. There is support for stocks around 1,255 on the S&P 500. The 1,255 level is also the 200-day moving average and the neckline of what appears to be the formation of a head-and-shoulders top. A decided break below 1,255 could signal further... Read the full story
A Stacked Deck: Is your broker providing compromised investment advice?
I want to briefly touch on the subject of broker dealers (especially publically traded firms) as they relate to our private, family registered investment-advisory firm. I started our money management business over two decades ago in response to years of requests from my strategy report readers for such... Read the full story
