COMMON SENSE

The following story is pipe dream, sounds interesting, but don’t make too much of it!   Just goes to show how much people really try to analyze the future, and believe they will come out on top.  The entire post doesn’t take into account of real deflation/inflation, market cycles, or the whole mess with political incompetence.   The biggest factor to consider in any short term or long term investing decision is politics!

The idiots we have in charge today, have one thing on their minds, absolute power!  The more people they can make dependent on the government, the better for them to return to political office and retire with more power.  You see money equals power, power equals money.   Anyone with a little bit of common sense, knows, you cannot print more money without inflation and a decreasing your purchasing power.

The future is not predictable! Enjoy the fantasy story….

Posted by

Jacob Lund Fisker

This is a guest post from Debbie M giving a detailed budget for a retirement plan costing half a million dollars. For most incomes, half a million means a less early retirement. Yet, it is still earlier than the “usual million(s)”.

The best part of my story is figuring out my expenses. Since I plan to quit work forever (or at least be able to) once I achieve financial independence, this is vital. It’s much harder to find a job when you’ve been out of work a while, and frankly it’s hard enough for me to find jobs now.

My investment plan is a little less exciting. I prioritize diversification. I used to not include bond-like things because my pension is bond-like, but really my pension fund is also invested in stocks, so if stocks plummet, my pension could be in trouble. So I’m including large cap and small cap, domestic and foreign (including developed and developing), growth and value, and bond funds and REITs.

If I keep up with current contributions to Roth retirement vehicles for the next five years, I will have $155000 in those alone, which would give me $645/month, which gives me some wiggle room in case the pension rules change or I can’t …

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Technorati Tags: business, funds, investing, Investment, Market capitalization, Mutual fund, pension, Real estate investment trust

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By JENNIFER HUFFMAN
Register Business Writer

On Oct. 30, a federal regulatory agency, the Office of the Comptroller of the Currency, closed all 17 branches of the San Francisco-based Pacific National Bank. All accounts were immediately transferred to new owner, U.S. Bank of Minneapolis, Minn. “Pacific National Bank no longer exists,” David Barr with Federal Deposit Insurance Corporation said.  According to Barr, Pacific National Bank fell victim to the same problems many other financial institutions suffer from these days — trouble with commercial real estate lending and loans to developers, as well as subprime Fannie Mae and Freddie Mac loans.

Pacific National Bank was one of nine bank subsidiaries of FBOP Corporation of Oak Park, Ill., acquired by U.S. Bank from the FDIC. The transaction included more than $18 billion in total assets and 150 branches in California, Illinois, Arizona and Texas. The Napa branch is located in the new Napa Square building on First Street in downtown Napa.

Since this crisis began in late 2007, there have been 18 bank failures in California, mostly in Southern California. The FDIC lists 416 banks on its problem …

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Technorati Tags: business, Commercial property, Fannie Mae, Federal Deposit Insurance Corporation, Freddie Mac, Office of the Comptroller of the Currency, San Francisco, United States

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Final wrap up of secular markets and the dangers of “buy and hold” theory that wall street touts through it’s “market media matrix” networks.  If you review the videos, part one shows you how a typical depression era bear market behaves.  The price action is similar to that of the NASDAQ market, reaching a high of 5000 points only to lose 80%.   It has been 9 years, and yet the NASDAQ  has failed to return to new highs. However, the Dow Industrial Index made new highs.  The reason for the Dow Jones Industrial average reaching new highs was because this index is largely “commodity based”.   The stock exchanges changed the stocks of this index during the first cyclical bear market in 2000, putting a few high tech stock into the index and some diversified financial services.  The Fed has created the biggest liquidity trap in history of the world, by creating the housing bubble through mortgages and other creative financial products.   These problems have not been addressed, but the Fed and the Treasury have placed your children and grand children into bondage through confiscatory taxes.

None of the “toxic assets” have been sold, yet, the Wall Street Traders and you, being invested in your 401k plans, have been participate in this short term cyclical bull market since March of this year.   You have also been conditioned to “believe”  Wall Street” can solve all the financial crisis, even the politicians have been convinced.  However, if you have any doubts about Wall Street’s competence, then you should be worried about the next financial crisis.  Using some common sense, and some technical training, you can determine when the market is overbought and over sold.   I have developed some simple tools to get you started.  I will be doing the rest of the 9 myths about investing over the next several weeks.  If you have any questions,  please email me or leave comments on the blog.  You will have to be registered to leave comments, so go register and let me help you out of a loosing position.  You can follow me on twitter, which I send updates on 401k plans, insurance companies, banks, and other financially interesting story I find on the internet.

Doc

Technorati Tags: 9 myths, baby boomers, bull market, investing, Investment, market, market cycles, technical analysis

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The Buy and Hold Myth, part 5, looking at next week, the market will have  price reminisces of last years stock market.  Now, if you thought the market reached it’s low last year, you still suffered losses through the low in March 2009.  How would you like to learn how to avoid these unnecessary market drops, you will have to learn technical analysis to time the market during these short term cycles.  My blog post in Jan, 2006, I explain how the market media matrix manipulates into thinking there is always and eternal bull market.  I reviewed Jane Bryant Quinn article about the theory of “buy and hold” for long term investors.  I think you will find it interesting to know that if you missed the best 90 days of market gains, you would have a paltry$2.70 for every dollar invested.  If you followed the “buy and hold” theory, you would have $75 for every dollar invested.  Now that sounds like a good case for buy and hold, right?

However, if you would have missed the worst 90 days of the market, your gains would have been $1694!   I guess Wall Street’s “market media matrix” does want you to know about that!

• A.  buy, hold, hope for 42 years for 90 good days in the market, results $75.
• B.  time the market yourself and miss the best 90 performing days, results $2.70
• C.  use Doctrader’s  “red signal line” to avoid the worst performing 90 days of the market, results $1694.

Raise your hand if you can see which choice you want!

Introducing the “red signal line” to determine if the market are in a long term bull market or a long term bear market.

Technorati Tags: 9 myths, Analysis, baby boomers, bull market, financial, investing, Investment, market, market media matrix, Part 5, technical analysis

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