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DavyJ

DavyJ
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  • Waiting On Cash, Debunking The Sacred Cow Of Investing [View article]
    Re: "Investors who had bought the S&P500 at the peak of 2000 would have needed to wait an excruciating 7 years before they broke even. An additional 6 years was needed after the 2008 crisis should the investor continue to hold."

    But the investor who was dollar cost averaging was buying all the while and did very well. Buying in 2002 and 2009. Who says you can't buy at the absolute bottom!
    Feb 27 12:25 PM | Likes Like |Link to Comment
  • McDonald's: Business Model, Valuation And Minimum Wage Legislation [View article]
    Re: "If the minimum wage had been raised on an annual basis since it was last increased,
    ...
    Adjusted for inflation it would be more like $15 an hour."

    Probably more like $20 because CPI would have increased at a greater rate. I am in the camp that inflation is not a good thing.

    Also consider: The median Social Security benefit is approximately $1275 per month which works out to be $7.35 per hour. With over 40 million people receiving Social Security, 20 million will fall further behind minimum wage. In other words they definitely won't be contributing to a more robust economy.
    Feb 27 11:56 AM | Likes Like |Link to Comment
  • Inflation Is Not A Risk, It Is A Necessity [View article]
    Re: "If the entitlements were all funded by taxes, every taxpayer would have to ante up a bit more than $21,000 to pay for the 2010 entitlements, an amount which would rise to something like $29,500 by 2030 (in constant 2010 dollars). The average household income in the United States today is $53,046. Since there are 115 million households, you can infer that average income per employed person is $45,187 (115/135 x $53,046).

    "Taxing $45,000 annual income to pay for $21,000 in entitlements (as of 2010) requires an average 47% income tax rate. Assuming incomes grow in real terms by 3% a year through 2030 the average income in 2030 will be about $49,300. A tax rate of 60% would be needed in that year to fund entitlements."

    But we have a progressive tax structure so an employed person earning $45,000 is not paying anywhere neat 47% income tax rate.

    And if inflation is adding to the burden of funding the entitlements, then more inflation is not going to ease the burden.

    The masses are being brainwashed that inflation is necessary. Repeat it long enough and more of the masses become to believe it.

    This is not to say there isn't a problem, but inflation is not a solution to the problem.
    Jan 2 09:26 PM | 2 Likes Like |Link to Comment
  • Rising Minimum Wages - The Most Vulnerable Sector And Company [View article]
    Only if you're rich enough to be eligible for relatively long term debt.
    Jan 2 07:44 PM | Likes Like |Link to Comment
  • Rising Minimum Wages - The Most Vulnerable Sector And Company [View article]
    Well inflation may be running below the Fed's target rate for several years, but it's above my target rate.

    As an octogenarian, you should know how inflation affects the poor much more than the rich, and suggesting an increase in inflation to go along with a minimum wage increase hurts the very people you are touting to help.
    Jan 2 01:52 PM | Likes Like |Link to Comment
  • Rising Minimum Wages - The Most Vulnerable Sector And Company [View article]
    I was referring to the comment that the employers should go out of business (or improve their business plan). That smacks of "if you are unskilled and can only be employed for minimum wage, then you should get an education and therefore command a higher wage" which is not only practically, but theoretically impossible.

    In the end, the "few lost jobs" are still lost.
    Dec 31 08:16 PM | Likes Like |Link to Comment
  • Rising Minimum Wages - The Most Vulnerable Sector And Company [View article]
    Re: "If we believe in capitalism, then we should believe that employers who can't pay a living wage should go out of business, not get propped up at everyone else's expense."

    Which in turn leaves the employees of these struggling businesses out of a job and resorting to food stamps at the expense of taxpayers, or visiting food shelves at the expense of donors, and might well be receiving Medicaid, subsidized housing, and maybe other help.
    Dec 31 06:54 PM | 2 Likes Like |Link to Comment
  • Rising Minimum Wages - The Most Vulnerable Sector And Company [View article]
    Not to mention that workers that are somewhat above the minimum wage now will find themselves at the new minimum wage and feel that they deserve more. Which in turn causes those above them to have the same feeling all the way up the line. And like it or not, that points to price inflation.

    So you see the escalation pointed out by StepUp below.
    Dec 31 06:47 PM | 3 Likes Like |Link to Comment
  • Rising Minimum Wages - The Most Vulnerable Sector And Company [View article]
    And now for the unintended consequences. The median Social Security benefit is approximately $1275 per month which works out to be, you guessed it! $7.35 per hour.

    With over 40 million people receiving Social Security, 20 million will fall further behind minimum wage. And with the new COLA calculation adjustments, the situation worsens. No additional purchasing power there to boost the economy.
    Dec 31 03:37 PM | 1 Like Like |Link to Comment
  • Is The Market Overvalued? Jeremy Siegel Says 'Not At All' [View article]
    Re"Cape Shiller has been in overvalued teritory by its own definitons since March 2009, where it's resided ever since. During that same period the SPX has risen 170%.

    "In essence, CAPE thinks things are overvalued almost all the time. The problem is that investors who believed similarly have been left for dead."

    Just a thought. CAPE being a ten year average, it will always be a lagging indicator, and comparing it to a real time snapshot of the average doesn't seem to be comparing two equals. Shouldn't it be compared to the ten year average of the SPX? If so, then I can't see how it's meaningful in a current environment.

    Anyone out there motivated enough to do the comparison?
    Dec 12 09:11 PM | 1 Like Like |Link to Comment
  • Wall Street Doesn't Understand Bitcoin Yet, But It Will [View article]
    krimhumhrim,

    When I posted that comment, I thought all would understand the irony. In retrospect I should have ended with a :).
    Nov 27 07:25 PM | 1 Like Like |Link to Comment
  • Wall Street Doesn't Understand Bitcoin Yet, But It Will [View article]
    For those who believe, no explanation is necessary. For those who do not believe, no explanation is possible.
    Nov 26 10:04 PM | 2 Likes Like |Link to Comment
  • Google roundup: Glass, Calico, NSA, Android/ARM [View news story]
    Moving the servers off-shore would make them fair game for NSA, wouldn't it?
    Nov 24 09:08 PM | Likes Like |Link to Comment
  • Dow Tweaks Industrial Average Roster, 3 High-Profile Names Gone [View article]
    And how do you weight your portfolio?
    Sep 10 09:56 PM | Likes Like |Link to Comment
  • What's Driving The Dow Lower? [View article]
    Well you could start with http://bit.ly/16SSLzw

    But what does that mean?

    In the end the only thing that counts is if your investment results meet your needs. Comparing your results with some other choices is only Monday morning quarterbacking and a "would've could've should've" comparison that may make you feel you aren't performing as well as you could.

    Focus on your needs and your results. If you're meeting them, then you are ahead of the game.
    Aug 22 09:05 PM | 4 Likes Like |Link to Comment
COMMENTS STATS
415 Comments
594 Likes