Inflation

Gold at All Time Highs? I Beg to Differ.

The game of investing in gold is a fine line of hedging inflation and increasing worth vs alternative investing and maintaining worth. However, inflation has caused some investors to forget how prices have actually risen. Remember your parents telling you what they could buy for a nickel?

Posted on November 10, 2010 by Shane Adam Yellin

Understanding Real Returns

Nearly a year ago I talked about the continued devaluation of the dollar since going off the gold standard in 1971. The truth is that politicians around the world will continue to tax citizens through inflation unless they are forced to tie fiat currencies to some sort of hard commodity. One way to see this is to look at the purchasing power of the dollar in 1967 versus the purchasing power of the dollar in 2010. The fact is that if you held had a $1 bill in 1967 and you held it until today, you could now buy $.15 of goods. The dollar has lost 85% of its value and it has served as a 4% annual tax on the US citizen. If you earned $100,000 in 1967 and never got a raise you effectively earn $15,000 today, assuming you are still working.

Posted on September 30, 2010 by surlytrader

Investing for the Wrong Future

One of the greatest fallacies of investing is the dependence on historical data and returns for the basis of investment decisions. You will often hear investors saying, âover the long-run stocks always beat bonds!â Recently, the opposite has been said because bond returns have trumped stocks in the last 30 years. This must mean that bonds are better investments than stocks right? These are false conclusions. What really matters is what is going to happen in the future, not what happened in the past.

Posted on September 28, 2010 by surlytrader

The Story from Interest Rates

The fixed income markets are incredibly large. According to the Bank for International Settlements, as of 2009, the world bond market stood at $82 trillion which was about twice as big as the global equity market. Even though bonds may not seem like sexy instruments, they can relay plenty of information that is often overlooked by equity investors.

Posted on June 29, 2010 by surlytrader

Why Dividends are Critical

Investors in almost all savings accounts and CDs are losing money due to inflation. Here's how to avoid this predicament and make sure your money doesn't lose it's purchasing power.

Posted on May 14, 2010 by Sean Riskowitz

Airline Fees Not Really So Bad?

Fees might be saving you money on travel.

Posted on April 22, 2010 by SteveAnderson

Fortune Article - What is Interest Rates Stay Low for Years?

The mainstream press is finally starting to discuss something I've been exploring for the past couple of months - what if interest rates aren't going up as almost everyone expects?

Posted on March 31, 2010 by Sol Nasisi

The Biggest Threats to the Stock Market's Growth: Watch out for These Signals

With the stock market rallying about 70% from last yearâs low, investors, traders and economists are now thinking (and betting) that the economy is ready to bounce back and that America will see a great expansion in the coming months. Here are the biggest events and indicators you should look for when deciding where to put your money.

Posted on March 20, 2010 by rypatel

Income from Equities or Bonds?

Since the fundamental outlook from a top-line revenue perspective still does not look great, companies turn to three alternatives to expansion: 1) share buybacks; 2) higher dividends; and 3) leveraged buyouts. All three of these are bad for bondholders and mostly positive for stockholders.

Posted on March 07, 2010 by surlytrader

Inflation: Why There Won\'t Be Any

After printing endless amounts of money and growing an unsustainable fiscal deficit, the US economy and inflation outlook is dire. However, it's my opinion that we are not going to see anything like the

Posted on March 05, 2010 by Sean Riskowitz

Testing the Interest Rate Barrier

Every few months I draw the spotlight on long-term US interest rates as they approach a long held barrier. Thirty year treasury yields have not been above 4.8% since the fall of 2007 but have tested the 4.7% level about 10 times since then. I consistently draw attention to long-term interest rates because they are intimately tied to housing affordability and the cost of servicing debt. The Federal Reserve can keep short-term interest rates low for prolonged periods of time, but they can only keep longer term interest rates suppressed for finite periods of time. In an economy burdened with debt, the level of interest rates are critical.

Posted on March 10, 2010 by surlytrader

Inflation Tame Despite Record Borrowing - CPI for January 0.20%

So far, although the government has been printing money, inflation as measured by the CPI remains very tame. It rose only .20% in January and almost all of that rise was due to energy costs. Core inflation, which strips out food and energy actually fell by .1%.

Posted on February 19, 2010 by Sam Cass

Positioning for Inflation or Deflation

How do you position your portfolio for such a dichotomy of economic outcomes?

Posted on February 16, 2010 by surlytrader

Marc Faber Says US Treasuries Are Junk

Marc Faber, the editor of a newsletter called the Gloom, Boom, Doom Report did an interview with Bloomberg in which he called US Treasuries junk. Well, what can you expect from someone who writes about gloom and doom?

Posted on February 10, 2010 by Sam Cass

The Link Between Money Supply, Gold Prices, and Inflation

The World Gold Council just released a new report which analyzes the link between the global money supply and gold and inflation. The analysis is particularly relevant today as both gold prices and the money supply have surged during the global financial crisis. What the analysis reveals is that:

Posted on February 05, 2010 by Sam Cass

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