Below is a very interesting article addressing the two possible outcomes when Greece defaults. Each outcome has meaningful impact on one's portfolio. It is prudent to prepare for either outcome.
When Greece Defaults Article Link
Tuesday, September 27, 2011
Monday, September 26, 2011
Rare Move - Berkshire Buys Back Shares
In a rare move Berkshire Hathaway is purchasing its own shares. The have approximately $38 Billion in cash and will purchased shares up to a reduced cash balance of $20 Billion. Berkshire has trailed the S&P 500 for the year, down approximately -17.2% vs. -9.6% for the S&P 500.
CNBC Article Link
CNBC Article Link
Thursday, September 22, 2011
4 Ways to Spot a Retirement Scam
They are:
1)Everyone can retire early. The fact is that few workers can actually do so.
2)It’s possible to earn as much in retirement as it is if you continue working. These promises are based on unrealistically high returns and withdrawal amounts that would deplete savings too quickly.
3)Returns of 12% or more are possible. The fact sheet notes that returns over 9.6% exceed the historical long-term returns for the stock market and far exceed the long-term returns for the bond market.
4)It’s possible to withdraw 7% or more and not run out of money. The fact sheet acknowledges that there is no consensus on a universally appropriate withdrawal rate, but encourages investors to be conservative, especially in the first years of retirement.
Source: Article Link
FINRA Checklist Link
1)Everyone can retire early. The fact is that few workers can actually do so.
2)It’s possible to earn as much in retirement as it is if you continue working. These promises are based on unrealistically high returns and withdrawal amounts that would deplete savings too quickly.
3)Returns of 12% or more are possible. The fact sheet notes that returns over 9.6% exceed the historical long-term returns for the stock market and far exceed the long-term returns for the bond market.
4)It’s possible to withdraw 7% or more and not run out of money. The fact sheet acknowledges that there is no consensus on a universally appropriate withdrawal rate, but encourages investors to be conservative, especially in the first years of retirement.
Source: Article Link
FINRA Checklist Link
Wednesday, September 21, 2011
Fed Invokes "Operation Twist"
Below is a link to a LA Times article discussing the latest fed action. It is an interesting move used to lower longer term interest rates. Last time is was used was in the 60's; it had minimum impact to improving the economy then. The fear is that the same outcome will happen this time, as well. The US and the world are not in a normal recessionary time period. This is a balance sheet recession meaning simply that we have too much debt outstanding. Consumers are hesitant to extend their debt further with out confidence in their income, assets and job situation. For the Twist to work it needs to allow for meaningful refinancing to give the consumer air to breath.
LA Times Article Link
LA Times Article Link
Tuesday, September 20, 2011
Great American Economic Lie
The linked article below highlights the primary issue we "economically" are facing. Simply speaking, the past 30 years growth is a fallacy, we used debt to maintain our standard of living. Now debt is no longer in excess and/or unavailable; we are faced with paying the bill for the last 30 years. We can no longer push it down the road. Paying the bill will slow economic growth. "Real Growth" will occur after meeting our obligations and a return in savings.
Great American Lie Article Link
Great American Lie Article Link
Monday, September 19, 2011
Roubini and El-Erian: Kick Out Greece to Save Euro
El-Erian, CEO and co-CIO of PIMCO, says an exit from the joint currency bloc for Greece and possibly one or two other countries (likely Portugal and Ireland, though he does not specify) will make for a stronger eurozone with a currency better able to resist "policy mistakes and market accidents." Roubini is in the same camp.
I believe the two experts are very concerned that increased problems in Europe will have a dramatic negative impact on the US.
Source: Article Link
I believe the two experts are very concerned that increased problems in Europe will have a dramatic negative impact on the US.
Source: Article Link
Friday, September 16, 2011
Inflation Since 2000
Source: http://seekingalpha.com/article/293977-inflation-a-five-month-x-ray-view
Wednesday, September 14, 2011
Tuesday, September 13, 2011
The Alphabet Soup of Financial Initial - What They Mean
As a holder of two of these I can tell you there is a difference. The linked article discusses the difference and what each means.
CPA,CFA or CFP??? Article Link
CPA,CFA or CFP??? Article Link
Monday, September 12, 2011
Thursday, September 8, 2011
Latest Update From George Soros
Below is a link to a CNBC news article in which George is very concerned that the Euro Zone Debt Crisis might be worst than Lehman Brothers in 2008.
CNBC Article Link
CNBC Article Link
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