Posted in Economics, Markets, Media, Politics.
– December 8, 2013
Market reactions always seem overdone. Jump on one side of the boat, then when it is about to tip over everyone jumps on the other side of the boat. The last guy to jump ends up getting wet.
In May, when the Bernank started talking about “tapering”, the dividend paying stocks took a large shock. In particular, Real Estate Investment Trusts (REIT’s) were thrown out the window. If you look at the S&P 500 and REIT’s, there is a 28% YTD differential:
Neck and neck till May 21st
The fear is that interest rates will rise (rapidly) and REIT’s will get squeezed by higher funding costs on the real estate AND bonds will look more attractive versus real estate investments. My guess is that rates will not rise as rapidly as what the market is pricing in. My guess is that REIT’s will do better than the S&P 500 in the next 12 months.
Posted in Markets.
– December 6, 2013
The comparison between Bitcoins and Beanie Babies has already been made. My question to you is how bad do you think it could possible get?
Unfortunately, those who truly believe in Beanie Babies lost a fortune. In one particular case, the couple lost everything and went bankrupt.
My belief is that the psychology high is infectious. Part of the lust has to do with rising prices and the allure of becoming rich from the “market”. I would argue that the bigger part of the lust has to do with the feeling of being part of something bigger. The once in a lifetime opportunity to be a participant in something massive and historic.
You end up doing nothing in life. You wake up, go to school, go to work, get married, make children, pay for college – then you die. Big deal. What a life. - Fight Club
This I can say: Beanie Babies were not the answer
This I will say: Bitcoins were not the answer
Posted in Markets.
– December 5, 2013
Generally I have refrained from posting anything related to personal finances, but I do feel that with the amount of time that I spend learning how to optimize my own personal finances, it is probably worth sharing.
Generally you can go to your different credit cards’ websites and earn points by clicking on links to online merchants directly from the credit cards’ shopping website. The big names in this space are Chase Ultimate Rewards, ShopDiscover, and Citi ThankYouRewards.
To be honest, it is kind of a pain to log in and click through the links on the credit card websites.
The alternative is simple: Ebates.com
Click on the link from ebates, use whatever card you want and then receive a check in the mail. The reward levels below are definitely financially helpful for your Christmas shopping:
Posted in Personal Finance.
– December 4, 2013
When does Krugman get angry? When someone believes that a cyclical economic downturn cannot be offset completely by central banking actions. Unfortunately for Krugman, Mr. Larry Summers actually congratulates the Federal Reserve for not letting the economic fallout to mimic the catastrophe of the Great Depression.
The actuality is that Summers merely believes that the United States is following the Japanese path. Maybe that is why he will not become the heir behind Ben Bernanke – because he is too much of a realist. It would not be the first time I saw someone lose a job because he/she did not blow enough smoke.
Well worth it to watch his speech:
Posted in Economics, Markets, Politics.
– December 3, 2013