Allamad

Why Emerging Markets Will Outperform Developed Ones Going Forward

GDP growth and increases in an emerging market country's equity prices not do always move in tandem. Stock prices can easily get overvalued as foreign buyers rush in at the top (and just as quickly exit when prices turn down). The overpriced Chinese stock market did nothing from 2000 to 2005 while the country's GDP grew at a 10% annual rate. Don't chase emerging market stocks after a big upmove. The best return's in emerging markets come from buying after a big drop as as export, commodity prices and the home currencies decline in fears of a global recession.

Why Investor Money Is Flowing to Foreign and Emerging Bond ETFs

Also take a look at some well-managed emerging market foreign bond mutual funds like Fidelity New Markets Income (FNMIX) which is up 42% this year and has a 10-year annual average return of 13%. The manager also has the discretion to buy some emerging market stocks when there beat up to juice the return. That sure beats what equities do and it goes down less than emerging market equities when you get the inevitable fall.

Bank of America's Gain Is Taxpayers' Loss

Compared to what the banks are making by having the Fed keep short term interest rates artificially low this is small potatoes. They take this money and loan it out at substanially higher rates thanks to the steep yield curve. Citicorp is now at 29.99% on the outstanding balance for credit cards. The real losers and the ones subsidizing the banks are the people who save, pay taxes and play by the rules. I've shifted most of my money (besides that in bank stocks) to emerging market bonds and currencies.

Word on the Japanese Street: Pain

Japan's government has carried out 12 major new stimulus plans since their economy tanked many years ago--all failed. Maybe by 2018 when the U.S. government embarks on stimulus plan #11 we'll realize only saving and investing and actually producing something are the keys to a healthy long term economy.

No Bailout for the Governator: California's 'Fiscal Emergency'

Unless California addresses the outrageous pensions, benefits and subsidized health care provided to state workers and state retirees nothing will change. The Prison Guards union is the worst offender. The only way that happens is if the state threatens bankrupty to get the unions to "give back" some of their benefits. CALPERS promised to keep bringing in the money from it's investments to pay for this gravy train, but since the markets collapsed thats not gonna happen. So things have to get worse before they get better.
Actually California taxes aren't that high when you consider how much lower property taxes are compared to a number of other states like New Jersey and New York. Like U.S. taxpayers we have been spoiled by politicians promising lower taxes and ever more benefits through massive borrowing and phony bond measures.

ETF Options for 'China-Deficient' U.S. Investors

What about the CAF which tracks the Shanghai market directly?

Tax Revenue Slump: No Doubt in These Numbers

We need to massively increase immigration, but only for those who are highly skilled or entreprenuers with significant assets to invest. Canada has been doing this for years with great success. Only this will bring in the future tax dollars we need. The U.S. is still a desirable place to live for many of the best and brightest foreigners. Our current immigration policy is a disaster and is inspired strictly by politics. Bill Gates recently wanted to bring in nearly 1000 top flight IT people and engineers from India and was turned down by the State Department.

Fed Finds a Way to Use Stress Tests to Screw Bank Shareholders One More Time

Bank shareholders deserve to be screwed, they voted in these inept managements! It's the banks that went to the taxpayers whining for help last September after they engaged in all the reckless lending practices.

Meet the Top Ten Creditors to the USA

The Chinese are making over $100 billion a year just on the interest from all the U.S. debt they own. Makes me feel good that I'm helping to fund the Chinese military (which is now building aircraft carriers, nuclear submarines and space-based missle interceptors). Thanks George and Barak.

Pollution: Free Markets vs. Social Conscience

My mom and dad both died from cancer (neither smoked) . All of the dogs they had even died from cancer. They lived 300 feet from an Emhart/Kwikset Lock factory that was one of the worst air-borne polluters in California. They were never told about the toxic pollution coming out from that plant. The developer who put their home and others near the factory in the 1950's and the owners of the factory never had to reveal what was coming out of the place.
Yes, environmental regulations are burdensome, but leaving it up to private businesses to inform the public and clean up their own act is a joke. Just ask the people living near coal mines in West Virginia, old gold mines in Colorado or near factory hog farms in Iowa or North Carolina. I suggest you check the EPA website to see what toxic stew you may be breathing in your neighborhood--you might be surprised. Thousands of people die in the U.S. every year from breathing polluted air (and their not all poor).

The Foreclosure Zombies of Mass Destruction

Buy at the funeral, sell at the wedding. The incentives for buying a home now in California are unbelievable. Housing prices in the L A area have leveled off for the last three months. I'm a tax preparer, almost every young couple I see are trying to scrape together a down payment to buy a home and get the free $8000 "gift" from the government and possibly the free $10000 CA tax credit for buying a never occupied home. They know something the analysts don't--when the government rigs the game in your favor, take advantage.

A General Hypothesis on Real Estate Prices

You cannot ignore the tax implications of buying a personal home. The government and the real estate industry have long manipulated the game to favor home ownership by letting you deduct mortgage interest, property taxes, points on purchase and now private mortgage insurance. You also get to take up to a $250,000 gain tax free ($500,000 if you're married) when you sell. In many states like Cali all personal home loans are non-recourse meaning you can walk away from a mortgage without having to declare the difference between your loan and the foreclosure sale price as income.

Since you're a first time home buyer this year the govt. will hand you $8000 on your next tax return for buying a home that you won't have to ever pay back as long as you stay in the home 3+ years. If you rent out your home in the future you can take up to a $25,000 loss on the rental against your income by deducting all expenses on the rental that you pay (almost no other loss is allowed such generous tax treatment). There has never been a better time to buy a house. Far more Americans have made there fortunes in the "rigged" real estate game than by investing in the stock market.

Revisiting the Long Term Bullish Case For Stocks

I've been investing since the late 60's and can remember being told repeatedly in 1974, 1982, 1987 and 2002 that it would be different this time and stocks would never come back. In August of 1982 when the Dow was at 776 and you could get double digit interest rates my friends said I was crazy to be still investing in stocks. Buy at the funeral, sell at the wedding.

Populist Pandering Won't Solve Crisis - Less Regulation Will

Your enemy is not al-Queda it's your own government. Long before the terrorists come on shore and take your property and convert your children, your government will bankrupt you. Republicans and democrats, liberals and conservatives, they all line their own pockets first (free health care for life, incredible perks and lifetime pensions after only two years in office). Raise your children to get government jobs as the country moves toward full socialism and away from free markets. Those will be the only jobs offering lifetime employment and inflation adjusted pay in the future.

Prophet Bernanke Plans for Inflation

The short ETF to bet against the U.S. 20 year is the TBT. It has fallen from $75 to $36 over the last 3 months. Bernanke has been buying treasuries like crazy to drive down long treasury yields to benefit mortgage rates that are tied to it. But, he can't do it forever without eventually destroying the market. I would buy the TBT once it stablizes and recovers to the $40-45 range.