One of the things that people frequently puzzle over is how the US can ever satisfy its massive national debt. The figures frequently seem so large that they are beyond the comprehension of most people. Most analysts predict tax increases or spending decreases as a way to offset accumulated deficits in the future. Analysis of the facts shows a very different story that is likely to play out again in the future.
Year: 2011
Zero to Success
Most of traditional financial literature is dedicated toward methods of investing that can be used to preserve wealth and generate returns on your investment. In most cases, these are laudable goals that command the attention of both new and veteran investors. However, there is a fundamental question that is frequently unanswered by such strategies and methods. This fundamental question is how one goes about getting the capital that is necessary to invest.
Design Your Income
Most of us are familiar with the notion of income and expenses, gross and net, profit and loss. These terms frequently work themselves into conversations about our financial wellbeing when we describe our income as X or our ‘take home’ as Y. However, there is a somewhat more complex understanding that makes income and expenditures take on a new dimension.
2011 Oil Predictions from Solomon Success
Oil prices have been going through a period of very significant volatility over the last few years. In the months preceding the financial crisis, global demand for energy was perceived to be on a permanent upward trajectory. This drove a large degree of speculation on oil prices by investment fund managers. The resultant run-up in oil prices1 generated large profits for established oil companies, which drew a high degree of political pressure from the government.
Gold Direction for 2011
Gold and oil are very different in their investment characteristics since gold is purchased principally to hold as an inflation hedge and oil is purchased primarily for refinement into gasoline and other petroleum products. Typically, this makes oil much more subject to international political factors and global economic forces. However, Gold has taken a more prominent role over the last few years as it has become a de-facto ‘anchor’ currency that is value-constant against monetary fluctuations by central banks.
Fiscally Fit: A Check-Up for Your Financial Fitness
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Fiscally Fit: A check-up for your financial fitness
1) When is the monetary expansion going to cause inflation to hit?
a. Never . . . monetary inflation is a myth
b. By the end of the year, if not sooner
c. By the end of next year, because of lag effects
d. It’s very difficult to tell exactly, but when it starts it will unfold very quickly
Our Experts See Fed Monetary Policy Headed This Way
One of the primary monetary news items to note as 2010 draws to a close is the announcement of more ‘quantitative easing’ by the Federal Reserve1. In plain terms, this means that the Fed will purchase treasuries on the open market. This will have the effect of artificially increasing demand for treasuries, which will push down the rate of interest. It is also expected to have the effect of pushing more money out into the economy with the hopes that it will stimulate consumer demand. Unfortunately, many fear that it will also stimulate inflation.
Living in the Land of Volatility
Traditional financial theory holds that the best way for average investors to acquire wealth over the long term is to become a ‘buy and hold’ investor. The basis for this notion is rooted in the fact that stock market values have progressively grown over an extended time interval. For example, the 20-year period from 1974 to 1994 saw a relatively smooth growth trajectory, even when accounting for the market crash of 1987. When investing in this kind of market, it is quite rational to ‘buy and hold’ because of the steady value progression over time.
25.2% Return on Investment with Atlanta Income Property
Atlanta represents an investment gem in the southeastern United States. It has spectacular economics from a development and employment perspective that make it a tremendous opportunity for income property investors. With a wide diversity of employers, many universities, and a vibrant cultural presence in the city, Atlanta has attracted a tremendous amount of in-migration from young professionals seeking employment opportunities. Since many of these young professionals choose to rent, the Atlanta market has very healthy rents relative to values. Currently, approximately 31% of listings in Atlanta are from foreclosures.
Bursting the Warren Buffett Bubble
There is a popular sentiment among many investors that the secret to success in the financial markets is to find a ‘Rock Star’ fund manager and ride their expertise to wealth. Of all these rock stars, none has more acclaim than Warren Buffet. Supporters frequently point to the 27.7%, 30-year compounded rate of return for Berkshire Hathaway (Compared to 12.8% for the S&P 500) and assume that the only thing they need in order to realize success is to find a person with the skill and insight of Buffett and invest in their ventures to achieve success.