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  • Lessons From Stock Market Volatility [View article]
    ¨So as ever, the best thing to do, if you’re saving for the long term, is to just keep on putting a small amount of money into the stock market every time you get your paycheck — and to ignore short-term stock-market gyrations.´´

    Look at a 10 year chart of the average mutual fund.

    A better strategy since 2000 would have been to put the money into certificates of deposit, or in a bank account denominated in euros. That way you would now be able to withdraw more than you originally put in.
    Aug 10, 2011. 07:42 AM | 1 Like Like |Link to Comment
  • Why Warren Buffett Is Wrong About the U.S. Credit Rating Downgrade [View article]
    ¨¨BHO,unfortunately is a hard left ideologue...¨

    So why does he stick with center right policies?

    Would ensuring that everyone, including those who have pre-existing conditions, can get affordable health insurance be an example of Central Planning and Control?

    I have noticed that people who emphasize his middle name or initial (H for Hussein) are often hard right ideologues or Tea Party loonies or conspiracy theorists or birthers.

    Obama has admittedly moved to the right, but remember his 2002 speech before the war in Iraq started in which he warned that the war would involve limitless cost and would last for an indefinite time.

    This war has been a major contributor to excessive government spending, but where the hell was the Tea Party when the idiot son Bush was giving away the store after he inherited the family business? They only appeared when the worst of the damage was already done, when really they should have acclaimed Obama and demanded that he end Iraq the day after his inauguration.
    Aug 9, 2011. 11:51 PM | 1 Like Like |Link to Comment
  • Why I Bought Apple on the 6th Worst Day for the Dow [View article]
    Good idea, but why didn´t you buy it a few weeks ago when it could have been had for $320?
    Aug 9, 2011. 11:29 PM | 1 Like Like |Link to Comment
  • Dungeons and Downgrades [View article]
    ¨I therefore have decided to believe only one thing.¨

    You have listed 3 things. Which one do you believe in, or is this a Holy Trinity?
    Aug 9, 2011. 09:32 AM | Likes Like |Link to Comment
  • The Market Has Spoken: Austerity Is Bad for Business [View article]
    In spite of inflation, the $1 billion coin will never catch on because of the difficulty of making change.
    Aug 9, 2011. 07:48 AM | Likes Like |Link to Comment
  • A Real Selling Panic: The Bottom Must Be Near [View article]
    We need to change the selection process for POTUS.

    There should be a competitive examination on international affairs and economics, and then the top ten scoring applicants should each be allowed to make a 60 minute TV presentation stating why they are qualified for the job.

    Then candidates should then be allowed to buy votes as per normal procedure.
    Aug 8, 2011. 08:56 PM | 1 Like Like |Link to Comment
  • Market Offers an Amazing Opportunity for Long-Term Investors [View article]
    It is not logical to think that there is anything logical about the pricing of stocks. Each has its own set of followers and behaves in a characteristic manner.

    It is also quite possible that persons who have done well with AAPL will be taking profits to make margin calls precipitated by recent declines in the market.
    Aug 8, 2011. 08:43 PM | 1 Like Like |Link to Comment
  • Market Offers an Amazing Opportunity for Long-Term Investors [View article]
    Stocks will continue to go down when there are more sellers than buyers.

    It would not suprise me to see some more steep down days ahead, and I doubt whether we will see up days of 500 or 600 points on the DJIA.

    I would not mind seeing another 300 points down tomorrow. After that I would probably lift my foot a little on the short side.

    AAPL was available for $320 a few weeks ago, a further 10% lower than the current price, so anything is possible.
    Aug 8, 2011. 08:01 PM | Likes Like |Link to Comment
  • Is Warren Buffett Losing His Mind? [View article]
    I don´t think that you can assume that any pundit or major figure really says what they actually think any more. Everthing is PR and talking points.

    Buffet is pretty advanced in years and maybe he is not as sharp as he used to be, but surely he understands that being paid back in devalued currency is not the same as being paid in full.

    Probably he was just wanting to say something patriotic. People often do.
    Aug 8, 2011. 07:53 PM | 1 Like Like |Link to Comment
  • A Real Selling Panic: The Bottom Must Be Near [View article]
    Calafia, you are a character! I believe I may have to adopt you as a contrary indicator. Perhaps you should offer yourself to Obama as an economic advisor. Considering that Bush advertised in Ebony Magazine for a National Security Advisor who liked football and could play the piano, anything is possible.

    Here´s what you wrote about 2 weeks ago:

    ¨As a result, for those who believe that the debt limit will be raised and fiscal policy will improve—even marginally—current valuations (of stocks) represent real bargains.´´

    Now you are still beating the same old drum, but really you have no better idea than anyone else how many hundred points the Dow will fall tomorrow.

    I was chatting with a university professor today, and he told me that last week he moved his $500,000 in the Pensylvania retirement system from the aggressive fund, which is 95% stocks to the defensive fund, which is only 10% stocks.

    With all the hysteria on the TV news, even people who never pay any attention to the stock market will now be making sure to secure their retirement future by making supposedly conservative choices like moving into bonds.

    When they have all finished, then it may be time to back up the truck.

    Why do you have no investment disclosures after your article? Do you live on top of a pillar of ivory in the desert and have food brought to you by students of economics looking for a miracle, or are you just embarrassed about how much you have lost?

    Disclosure: 70% cash, lbut waiting for the right girl.
    Aug 8, 2011. 04:50 PM | 7 Likes Like |Link to Comment
  • Sirius XM and Liberty Media: If Not Now, When? [View article]
    ¨If Not Now, When? ¨

    Aug 8, 2011. 12:08 PM | Likes Like |Link to Comment
  • Why Warren Buffett Is Wrong About the U.S. Credit Rating Downgrade [View article]
    Some members voted against the final deal, which was equivalent to voting against a raise in the debt ceiling, which effectively meant that the US would be at risk of default or of a constitutional crisis.

    Try Connie Mack of Florida, if you want a name.
    Aug 8, 2011. 10:32 AM | Likes Like |Link to Comment
  • Why Warren Buffett Is Wrong About the U.S. Credit Rating Downgrade [View article]
    This is all quite right.

    There is also the question of currency exchange value. Any kind of rating has to take into account comparative safety, how safe an investment is relative to what else is available.

    Let´s say the US remains at AAA, the same as the UK, but the UK is bringing its deficit problems under control and the US is not.

    Does this not mean that the UK pound is likely to appreciate in value relative to the dollar? If that is the case, then the UK deserves a higher rating than the US, and there is nothing higher than AAA, then it makes sense to downgrade the US so that sovereign debt denominated in other currencies has the potential for higher rating (if it is deserved).

    Certainly as it has stood over the last year, just holding ANY kind of investment denominated in US dollars has not been the safest thing to do, and there is little evidence that the US dollar is about to become the safest currency on earth.

    Certainly the US has the ability to pay its bills, because it can print its own money, but if it only pays them in devalued dollars, then that is a kind of default, at least it would be if you saw it from the point of view of a holder of US debt.

    We also have the Balanced Budget Amendment now on the table. While I believe it is unlikely to pass, if it did, it could lead to a situation where the US might be faced with default or else massive civil unrest over goverment cutbacks. This is a country where one in seven of the population is already on food stamps.

    S&P is right, and this should be a massive wake up call to the US.
    Aug 8, 2011. 08:00 AM | 4 Likes Like |Link to Comment
  • S&P Downgrades U.S. to AA+ - We're Tied With Belgium! [View article]
    Dog food is generally cheaper than food deemed fit for human consumption on a calorie per calorie basis, so it doesn´t make economic sense to give the dog fresh meat for human consumption.

    However, you can´t use food stamps to pay for dog food, so you have to pay cash.

    Arguably it would be even more cost efficient just to let the dog eat scraps and garbage, but Americans are quite insane about feeding their pets. In my local Walmart there is one (short) aisle devoted exclusively to dog food and another for cat food, even though the stuff is basically the same.

    Not a good idea, though, to confront food stamp using pet owners to discuss the economics of domestic animal husbandry, otherwise you may spend the rest of the day contemplating the economics of health care.
    Aug 7, 2011. 11:01 AM | Likes Like |Link to Comment
  • S&P Downgrades U.S. to AA+ - We're Tied With Belgium! [View article]
    This morning Jeff Miller said this in another SA article:

    ¨For starters, this should not have been on the agenda. Those in Congress who want to challenge the budget deficit should do so via the appropriations process, the taxation process, or the budget process. Doing it at a time when it can raise apparent questions about US creditworthiness was irresponsible.¨

    This is the point I am trying to get across.

    I can certainly find common ground with the Tea Party in agreeing that deficit spending cannot be allowed to continue to increase for ever, and that we may need to look at how entitlement programs are funded, how much we spend on discretionary programs, how much goes on defense, how we raise revenue, and so on, but that attempting to derail the debt ceiling process only days before bills fall due is not the way to solve vast systemic problems.

    Reduce the deficit, yes, but it has to be done in a way that takes into account the short and long term interests of the United States and its people, and without resorting to silly gimmicks like a balanced budget amendment vote, which, if adopted (unlikely), would cripple the ability of the US government to respond to unpredictable conditions with sophisticated economic tools, taxation policy, etc.
    Aug 7, 2011. 09:24 AM | 1 Like Like |Link to Comment