Is the recession over?
With news reporting the recession is finally over and the stock market recovering over 50% from the March 9th low, we need to ask: is the economy truly improving? Many in the financial media and on Wall Street would like you to believe this is the case. However, a further reflection of what’s truly happening on Main Street shows a completely different tale:
It’s estimated that:
- Unemployment will hit double digits
- One in three commercial loans is on verge of default
- Payments on over one million adjustable rate mortgages are about to significantly increase
- Personal bankruptcies are up 33 %
- Business bankruptcies may increase by over 60% before 2009 comes to a close
Read More »
Is your investment strategy as morally conscious as you are?
It’s not uncommon …
Many well-educated, morally conscious, faith-based investors wind up buying shares of companies whose beliefs and business practices are far removed from their own. Why? Most investors simply haven’t thought about merging their personal beliefs with their investment strategies. Some may not even be aware of where and how their money is invested.
Is it that big of a deal?
Only you can answer that. For some it is, and for others it’s not. What matters to you may not matter to the next guy, and vice versa. But consider this – when you invest in a company, you own part of that company. Some investors would prefer to separate themselves from their investments, but any shareholder cannot. So what you really need to consider, based on what the company does and how they conduct business, is whether you would feel comfortable being a partial owner of that company. Read More »
Smart Shopping in a Troubled Economy
Now that the US Government has bailed out the same companies who have been maneuvering to take your money, isn’t it time for your own bailout? If the Government can take $700 billion and reward the banks, insurance companies, mortgage companies, and auto makers who have long taken advantage of consumers, isn’t it time you fought and won?
It is an extremely daunting task trying to borrow your way to prosperity. As the government digs itself further into debt, you do not have to follow suit. The one silver lining from the 2008-9 financial crisis is consumers will have to rely less on debt to finance their lifestyles. As credit becomes more difficult to obtain, consumers dare I say have to pay cash for certain items. They can no longer use their home equity as an ATM, and have to find more creative ways such as saving to buy larger items. I half joke about these points but the good news in this downturn is more and more people will have to go back to the basics: spend less than you earn, save money for a rainy day, try to avoid credit, and invest more for financial freedom to name a few. Read More »
Why Financial Lies Destroy Wealth
When it comes to investing, most people who lose in investing do so, not because of ability, knowledge, or skills, but rather due to a series of poor decisions, bad advice, and critical mistakes. Many of which were completely avoidable! I have seen so many people take big losses, pay exorbitant fees, pay too much in taxes, and buy and sell at the worst possible time.
If you have been unsuccessful at investing, chances are it’s not completely your fault. Don’t hear me wrong! I am a huge fan of personal responsibility and accountability. However, with bad advice being the norm, it is very difficult for the average investor to cut through the noise, to discern fact from fallacy, and make the correct choices. Read More »
Posted on October 8, 2009 in
Radio
If we all knew the exact time to buy and the exact time to sell we’d all be rich and there would be no point talking about investing. Few people, if any can know exactly when to buy or sell with any degree of accuracy. Most investors get it completely wrong. Need proof?
If you analyze data from the Investment Company Institute (ICI) and look at the all time highs of the stock market (such as October 2007: Dow 14,000), you’ll see the greatest number of people buying and when you look at some of the lowest points of the market (such as March 2009: Dow 6,600), you’ll see the highest number of people selling. This confirms that most people buy high and sell low. This is the exact opposite of what they should be doing! Read More »
Changing your behavior may help you improve your financial picture.
Many of us plan thoughtfully for all kinds of life goals. Yet many of us spend impulsively, using our money on the moment rather than saving or investing it for the future. This last recession caused us to take a second look at where our dollars go. If you seem to be making adequate money and yet dollars still appear to be slipping away from you, maybe it is time to break some budgeting and spending habits.
1. Have a budget
Many people live without one – and that includes many affluent people. This exercise is starkly simple, but might be illuminating: make a two-column chart, with the left column listing your monthly income and the right column detailing your expenses. Detail them as best as you can, type and monthly amount. Include your credit card expenses. This little exercise shows you how much you are spending on essentials and how much of your income you are assigning to comparative frivolities. Perhaps you will find some dollars you could reassign to planning for your financial future. Read More »
