Federal revenue growth of 10%? If that is true AND somehow it stays near 10% for the forseeable future, then clearly we've discovered free energy or something of that nature. No way will we see 10% federal revenue growth for any length of time. 1% growth would be lucky over the next 10 years.
Seeking Alpha chose those ticker symbols. I didn't put them in there. Junk bonds are a different analysis, but are still historically very expensive given the risk. In a major downturn a junk bond fund can see 20% defaults. Also, the junk bond ETF JNK was down nearly 50% in 2009 from its peak in 2007. It is important to balance risk vs reward in these types of funds.
Identifying the Best Clean and Renewable Energy ETFs [View article]
If you "invest" in clean energy you are gambling on government funding. If the federal government cuts back on subsidies to this taxpayer fraud then most of these stocks will crater. If you want to gamble of government action or inaction there are other ways to do it. The majority of these companies do not do anything useful for society so investors should be aware what they're getting into. As a side note, I do not necessarily include nuclear energy in this group. They would not need subsidies in a free market.
In theory U.S. printed money should have no effect on Chinese prices. More dollars go after Chinese goods which drives the dollar/yuan rate down. So more printed dollars buy fewer yuan. In a truly flexible exchange rate regime this would be the case. However, and this is the big however, China manipulates its currency (like most countries do) and has kept the yuan from appreciating against the dollar. Also, the dollar being the reserve currency of the world plays a large part. So yes, it is very possible we are exporting inflation to China.
Prepare for the Next Downturn With Low-Debt, High-Dividend Stocks [View article]
Notice he looks at high dividend stocks only. He doesn't take into other important factors such as debt/equity, payout ratios, and dividend growth rates. Also, he studied the past when the U.S. economy was actually growing. We are headed towards a very slow growth future. Growth stocks will not do well in this environment in my opinion.
Was Bernanke Lying About Printing Money? [View article]
You are right about money creation and how fractional reserve lending works. However, if you think Ben Bernanke was simply "wrong" and has not been making calculated lies, well then he simply has you fooled. The man is a sociopathic liar. That aside, there are reasons that the U.S. is different than Japan. Most of Japan's debt is owned by its citizens. Japan had very high savings rates for a long time. What we have is a very low savings rate and an unsustainable relationship with China buying our bonds and assuming the dollar won't crack. The bottom line is this: In a fiat currency world the end begins when people lose faith in the currency. That is what happened in Weimar Germany. The Japanese did not lose faith in their currency. But if China loses faith in ours, it's the beginning of something terrible for the U.S. unless we simply default on all treasury holdings to foreign countries, which is what I recommend.
13 Dividend Stocks With a Good Yield / Growth Mix [View article]
Nice article. I always like reading articles posted by D4L. The yield on cost idea is a good one, but it's a little bit overstated since it doesn't take into account the time value of money. The proper way to calculate a figure such as this is to simply take the present value of all the dividend cash flows and find the yield.
A Simple Plan for Saving More Money [View article]
I don't think the savings rate figure takes into account swings in capital gains from the stock market. Otherwise the savings rate would be all over the map month to month.
So are you for the program or against it? It is pure theft from taxpayers to states that overspent. How anybody can support this theft is beyond me. It is a decent start that the BABs program won't be extended. There is much more to go.
While there is considerable debate as to the thoroughness of the audit of GLD, it would be disingenuous to say that demand for gold ETFs is not also driving demand for actual gold. Gold ETF demand is part of the large increase in the price of gold over the past three years.
That being said, I do agree that if you have no issues with storing physical gold, it is the safer way to play it.
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Prepare for the Next Downturn With Low-Debt, High-Dividend Stocks [View article]
Beware of a China Bubble [View article]
Prepare for the Next Downturn With Low-Debt, High-Dividend Stocks [View article]
Corporate Bonds Not Worth the Risk [View article]
Was Bernanke Lying About Printing Money? [View article]
Protecting Your Portfolio From Inflation [View article]
That's not true. The principal balance factor on TIPs bonds adjust every day based on the CPI index from two months ago.
www.bogleheads.org/wik...
13 Dividend Stocks With a Good Yield / Growth Mix [View article]
A Simple Plan for Saving More Money [View article]
Build America Bonds Not Extended [View article]
What Is Gold a Hedge Against? [View article]
That being said, I do agree that if you have no issues with storing physical gold, it is the safer way to play it.
What Is Gold a Hedge Against? [View article]