While tracking the market today, I expanded the S & P 500 graph time window
from the normal mode of a month or a year, to run from 1970 through the
present. What I found illustrates a fascinating principle of wealth building.
The blue line represents that value of the S&P 500 index. I overlaid the
bright pink line to show what would have been the normal path of the economy
had the trend from 1975 to 1995 persisted. Obviously it did not.
The period from 1995 to the present represents a time of unprecedented
“activity”. What we can also see is that activity produced no
sustainable, wide spread, wealth as right now the index has returned to its
Considering this period from 1995 to 2009 carefully it occurred to me that
this “unprecedented activity” brought about sweeping change 1) In the
widespread use of hedge funds, 2) Ridiculously easy credit, 3) An increas... (more)
Somewhere on the internet last week, mention was made that unemployment for
high income people was (essentially) non-existent, while extremely high for
low income earners. I was able to track down that data for the fourth quarter
of 2009. Here it is by income:
As you can clearly see the lower income levels are experiencing the greatest
difficulty finding jobs. Interestingly enough, this data is not making its
way into the mainstream. But even more interesting is the set of
“circumstances” that has caused this, or at least occurred in the same
approximate time frame.
Minimum Wage... (more)
"This was the o bject of the Declaration of Independence. Not to find out new
principles, or new arguments, never before thought of, not merely to say
things which had never been said before; but to place before mankind the
common sense of the su bject, in terms so plain and firm as to command their
assent, and to justify ourselves in the independent stand we are compelled to
take." --Thomas Jefferson
"All that I have, and all that I am and all that I hope to be in life I am
now ready to stake upon it; and I leave off as I began, that live or die,
survive or perish, I am for the... (more)
If you read any business or financial publications this time of year,
you’re likely to see an article that goes something like this: ”Buy
these stocks and forget them…”
We recommend that you ignore these articles, but just in case you are tempted
to read, then follow the instruction to buy these stocks, and then simply
forget them, take a look at the results of this prediction from Fortune
Magazine August 14, 2000.
Recommended buys August 14, 2000: 1. Nokia (NOK: $54)
2. Nortel Networks (NT: $77)
3. Enron (ENE: $73)
4. Oracle (ORCL: $37 split adjusted)
5. Broadcom (BRCM: $158 split... (more)
This time of year is a favorite for children of all ages – I happen to be
one of these kids – in part because of the television programs that are
shown around Christmas.
A Charlie Brown Christmas, Santa Claus is Coming to Town, Rudolph the Red
Nose Reindeer, and How the Grinch Stole Christmas, have been favorites of
mine since TV went from exclusively black and white to poor quality color.
This is no coincidence as these programs were made in the mid 1960’s.
As I was watching this year, it occurred to me that if at this time in
history Christmas had not yet been established, if so... (more)