Economics – The Long
View
Don’t
raise taxes, help create capital gains!
Interesting argument: The U.S. deficit is not because we are
under-taxed, it’s because there has been a shortage of capital gains. So, government should focus on policies that
help create capital gains.
There’s always stuff to worry
about – Bailing out Greece, China’s soft landing or the massive U.S.
Deficit. However, the U.S. consumer drives the world economy,
and is as important to the world economy as all of Asia and Latin America. Source: Paul Kedrosky.
Consumer spending is affected by
housing which is affected by the banking industry. As soon as the banks can get back to the
business of expanding credit (lending), the faster the economy will recover. Here’s a concise
explanation what’s happening with bank litigation and mortgage settlement.
Stocks/Companies
Amazon: Are the wheels coming off? Here’s a detailed analysis with strong evidence
questioning Amazon’s
ability to grow profitably.
Dr Pepper vs. Monster: One sure way to guarantee mediocre (at best)
investment performance is to overpay.
Not sure Dr. Pepper stock is undervalued, but shares of Monster look
priced for perfection. See the
comparison here.
Value investor believes there’s a little upside left in the
shares of Sara
Lee.
Supervalu – cheap stock price, but shrinking sales and falling
inventory turns suggest caution. See the
detailed financial analysis of its estimated worth here.
Finance/Investment
Tips for High Income Earners
Buy Stuff vs. Do Stuff.
Think about how much your home is really costing you. Industry estimates that a home’s annual
maintenance cost is 1 -3% of its original cost.
Add another 1% for property taxes.
So, an $800,000 home may cost $32,000 in taxes and maintenance per
year. Downsizing to a smaller home, say
$400,000, would put $16,000 in your pocket every year, enough to buy a nice
month-long vacation in Aspen, the Hamptons, or the Coast of Spain.
Why You Should Avoid Private Placements - Spot-on commentary
from a former stockbroker. It’s worth a read for great lines like “the company
will vanish like the cast of Mr. Belvedere”.
Apologies though for the foul language in the article (you can take the
boy out of the brokerage, but not the broker out of the boy).
Random Stuff You
Might Like
“People will say he is
socially awkward and incapable of leading.
They are wrong. This kid is a
winner. Let’s do whatever we can to get
him. It will be the defining moment of
the franchise.”
That’s a Bull’s-eye for Ernie Acorsi, on Super Bowl MVP Eli
Manning – here’s the full 2003
College Scouting Report on Manning.
Outliers – 10,000
hours of training. Malcolm Gladwell
doesn’t let scientific evidence stand in the way of book sales.
Dilbert on Stockbrokers.
