Archive for November, 2012
How False Economic Signals Confuse Investors
Employment Numbers are Still Difficult U.S. Bureau of Labor Statistics: U.S. Unemployment rises slightly to 7.9 Percent in October, U.S. total non-farm payroll employment increased by 171,000 in October, and the unemployment rate was essentially unchanged at 7.9 percent and the number of unemployed persons (12.3 million) were essentially unchanged in October, following declines in [...]
Irrational Exuberance – the thinking of financial analyst Jeremy Grantham
Advisers to Investing Readers will know that we often comment on the motivations of those that advise on where to invest, and what to invest in. They have their motivations and it is essential for investors to understand why your investment adviser recommends an investment and why a media pundit touts some stock or other. [...]
The Panic Investing Cycle – How to Make Money in the Stock Market
The Panic Investment Cycle We have often repeated some basic principles of investing, including advising readers to recognize that every stock varies in price more as a result of emotion and other factors, than as a result of the company’s real business activities. The most important factor in buying or selling a security, is the [...]
The Great Rotation – What Happens When the Fiscal Cliff is Resolved
The Fiscal Cliff Approaches With the US election now over, the Tea Party smacked down, and the Republicans licking their wounds, attention has shifted to the Fiscal Cliff. Should the politicians not reach agreement, a prearranged penalty system kicks in with large income tax rate increases and large expenditure cuts. Sort of a massive bluff [...]
Pentagon and Toyota Seek to Overcome China’s Rare Earth Strangehold
Ucore Rare Metals Inc We have previously written about Ucore and it has one of our favorite picks for some time. Today an article was published in www.mining.com that highlights Ucore and Matamec Explorations Inc. For the largest part, this article mirrors our opinion on the rare earth sector. Buy When the Price is Low, [...]
Experts are the Worst Predictors in Times of Uncertainty
Today, We Debunk Some Myths There is a large industry of media types that talks incessantly of what to do in the stock market, or what is expected and therefore how you should trade, or what you should buy or sell. All of this activity is generated by people wanting to know how to make [...]
How the Smart Money Profits in the Stock Market
Knowing Basic Rules of Investing The purpose that I had in mind when I began this blog in 2010, was to give investors some insight into how the markets worked. Several blogs gave readers basic investing guidelines that were tried and true, and which stood the test of time. In my readings this week, I [...]
Commentary on the Price of Gold – Buyer Beware
Will Gold Reach $2,500 an Ounce Common wisdom is a belief that gold is poised to rise in value, and that you had better buy gold for your security. Advertisements heard regularly on US and Canadian radio advertise how to buy gold for your portfolio. Gold Funds and Silver Funds, Gold and Silver ETF’s and [...]