Efforts to enforce American sanctions on Iran have led the U.S. government to blacklist COSCO shipping, the world's largest shipping company, and the owner of 6% of the world's VLCC (very large crude carrier) fleet. The fallout from the blacklisting has created a boon for American oil exporters who have picked up the slack. Costas Paris reports at The Wall Street Journal: Shipping executives say the U.S. action late last month over allegations that the vessels were tied to illicit shipments of Iranian crude has hit more than 40 tankers operated by a subsidiary of Cosco Shipping Energy … [Read more...]
Breaking News: Fidelity’s $0 Commissions Done the Right Way
Well, it’s not exactly breaking news that Fidelity has said it will offer free online trading. What is worth noting is they will not be making money off of your cash by lending it out as was explained here: You may have seen that Charles Schwab has reduced its commissions to $0. But when you dig a little deeper you realize there’s a catch. As it turns out it’s free but Schwab gets to use your cash, lend it out, and pocket-the interest you could have made. “Schwab doesn’t use money-market funds or short-term Treasury funds, which could earn nearly 2% at recent rates,” explains Jason … [Read more...]
Do Wealthy Americans Pay Their Fair Share in Taxes?
The 1% of Americans with the highest incomes pay an average federal tax rate of 33%. Meanwhile, the bottom 20% of households pay an average of 2%. In fact, once transfer payments are factored in, the bottom 20% of households pay -70% in taxes, earning $49 for ever $1 they pay in federal taxation. Bloomberg's Michael R. Strain reports: Contrary to the narrative that seems to be forming on the political left, the U.S. federal tax code is very progressive. According to the nonpartisan Congressional Budget Office, the lowest-income 20% of households have an average federal tax rate of about 2%. … [Read more...]
Your Retirement Life: Sweet Home Alabama
Whether you like golf, music, food, or all of the above, there are plenty of reasons to visit Alabama. Not least of which is Alabama's third-lowest cost of living in the United States! Here are some of my favorite destinations in Alabama. Robert Trent Jones Golf Trail Muscle Shoals Lucy Buffett's Lulu's Lucy Buffett is the sister of Jimmy Buffett. Lynyrd Skynyrd - Sweet Home Alabama - 7/2/1977 - Oakland Coliseum Stadium (Official) Originally posted on Your Survival Guy. … [Read more...]
Are Central Banks about to Burn the Dollar?
For decades the gold standard reserve currency of the world has been the American dollar, but now as Eva Szalay and Colby Smith report for the Financial Times, that preeminent role may be at risk. They write: The US dollar has long towered over global markets and finance. But cracks are starting to appear in the edifice. The greenback’s pre-eminent role in official funds and international trade is formidable and unlikely to fade quickly. But the latest data from the IMF on central banks’ reserves show a subtle shift away from the dollar that analysts say could signal a rethink on the … [Read more...]
$0 Commissions: Charles Schwab Has Always Been About Charles Schwab
You may have seen that Charles Schwab has reduced its commissions to $0. But when you dig a little deeper you realize there’s a catch. As it turns out it’s free but Schwab gets to use your cash, lend it out, and pocket-the interest you could have made. “Schwab doesn’t use money-market funds or short-term Treasury funds, which could earn nearly 2% at recent rates,” explains Jason Zweig at the WSJ. “Instead, it shunts the cash into Charles Schwab Bank, which currently pays 0.55% on the money—and then turns around and lends it out at roughly 2%.” Clearly you can see Schwab isn’t working … [Read more...]
Your Retirement Life: Check Out the New Corvette C8
Your Survival Guy had a chance to check out the new Corvette C8. Starting out at $59k this stunner is a game-changer. Jay Leno has the first look at the 2020 Chevrolet Corvette Stingray - Jay Leno's Garage Jay Leno has turned his passion for cars into an investing strategy. See how he does it here. Originally posted on Your Survival Guy. … [Read more...]
Can China Avoid Isolation, Decline and Revolt?
Bret Stephens, writing at The New York Times, isn't sure that China can avoid "full-blown nightmare of international isolation, economic decline, and domestic revolt." With the Chinese economy's growth slowing down to levels not seen in nearly 30 years, and capital fleeing the country, Stephens wonders if China has hit a "middle-income trap." He writes: It turns out to be a trap few countries escape: Of 101 countries defined as “middle income” in 1960, only 13 rose to high-income by 2008, according to a World Bank report. And some of these countries, like Greece, are prone to slip … [Read more...]
This is the Most Persuasive Test of High-Quality Investing: Does Your Portfolio Pass?
Of all the ways you can test the holdings in your portfolio, Ben Graham codified what he called the most persuasive in his book Intelligent Investor. Companies paying dividends for 20 consecutive years were first on Graham’s list of high quality. I explained high quality to readers in August 2007, writing: Laurent & Villchur... Back in 1967, Acoustic Research’s demonstration room on Mount Auburn Street in Cambridge, Massachusetts, was ground zero for state-of-the-art high fidelity. My experiences in Cambridge led me to buy the Acoustic Research AR3 speakers and AR turntable that I am … [Read more...]
How to Find the Best Place to Retire
If you are like many soon-to-be-retirees in America, you're looking forward to getting away from your cold, northern, probably-high-tax state and settling down in retirement in a southern locale with low taxes and warm winters. But, how can you know where you'll like it best in your Golden Years? I encourage you to do some A/B testing. Live short-term or spend a vacation in some of the places you'd potentially move to during retirement. Without actually staying there for a month or more, it can be hard to judge whether or not you'll be happy. There's another way to get a feel for new … [Read more...]