Investing Tips
How Much Money Do You Need to Make a Living Investing?
One of the reasons we invest is that eventually we won’t need to work. Many people aim for a retirement in which investment income covers living expenses. If you are really good at investing that day may come sooner. Which brings up the question, how much money do you need to make a living investing? And that gives rise to the questions how much money you need to live on and how fast your investments grow. The Simple Dollar writes about when your investment income covers your living expenses. They talk about the cross over point.
The crossover point is the […]
Which States Will Be Hurt by Scrapping NAFTA?
Trump supporters firmly believe that getting rid of or at least renegotiating NAFTA will result in more jobs in the USA. Is that true? Who gets helped and who gets hurt if trade with Mexico diminishes? Texas Public Radio says that Trump’s call to renegotiate or kill NAFTA will hurt Texas.
A new pickup truck comes off the line nearly once a minute at Toyota’s San Antonio factory.
The Japanese automaker set up in Texas more than a decade ago to be closer to truck-buyers-and to take advantage of cross-border trade.
“The fact that it’s close to the NAFTA corridor,” says Toyota Motor […]
Will Eisenhower Era Jawboning Work on Stocks Today?
Those who believe that Trump will “make America great again” are thinking of the 1950’s, the years when Ike (5 star general turned president Eisenhower) was in the oval office. During his time in office Ike was known to call the president of US Steel and “jawbone” him into not raising the price of steel because when steel prices went up so did the price of every item made with steel or by machines with steel parts. It was considered the first step in inflation. The same approach was used by President Lyndon Johnson during the 1960’s when the word […]
What Impact Would Tighter Monetary Policy Have on Your Investments?
A new president is about to take office. Successful investors will be the ones who anticipate how the next administration and congress will affect the economy and how the various factors at play will affect investments. In the case of Trump and a Republican controlled congress we expect tax cuts, an attempt to bring corporate cash back from overseas and increased spending on U.S. infrastructure. If these plans come to fruition there will be at least short and medium term stimulus to the economy. A predictable result will also be increased interest rates, namely a tighter monetary policy. The value […]
How to Pick Stock Winners for 2017
Will the Trump stock rally continue or fizzle? Will the market shrug off rising interest rates or will the Fed’s actions torpedo the stock market? Which are the best stock picks for the coming year and which will be losers? Let us consider how to pick stock winners for 2017. CNBC writes about experts who expect stocks to rise next year.
U.S. stocks should rise slightly in 2017 as equities benefit from tax cuts, according to CNBC’s Market Strategist Survey.
The survey of 13 strategists’ outlooks published since the U.S. election found the median 2017 S&P 500 price target is 2,325, or […]
Are Defense Stocks in Trouble?
Last week President elect Trump criticized Boeing for the two next generation Air Force One presidential jets costing $4 billion. No matter that there is only a contract for design and no contract for building jets to replace the aging Boeing jets that carry the president. Boeing stock fell briefly anyway. Then this week Mr. Trump criticized the F-35 joint strike fighter jet program as having costs out of control. And now Lockheed Martin, United Technologies and BAE systems stocks are trading lower. The Wall Street Journal discusses the effects on defense stocks as Trump targets the F-35 program.
President-elect Donald […]
How Bad Is Obama Care?
While the Affordable Care Act (Obama Care) has provided health insurance for many who could otherwise not afford it, the net result for health stocks and insurance companies has not been good. How bad is Obama care for the companies involved? Reuters just announced that health stocks helped pull the market lower.
U.S. stocks started the fourth quarter on a weak note as healthcare stocks fell and Deutsche Bank’s travails weighed on financials.
Merck and Johnson & Johnson both fell on the day. But a better measure of how bad Obama care is for health stocks are the number of health insurers […]
When Yellen Speaks Stocks Fall
Janet Yellen, Chairperson of the U.S. Federal Reserve has spoken and U.S. stocks are lower. Speaking at the yearly Jackson Hole economic symposium sponsored by the Kansas City Federal Reserve Bank, Yellen said that the case for a rate increase has gotten stronger and then stocks headed down. The Wall Street Journal comments on Yellen’s remarks about interest rates.
The remarks, which had been anxiously awaited all week, sparked an initial reaction to sell stocks that quickly reversed itself. Later in the session, stocks again fell, as investors’ expectations for a rate rise later this year climbed. Treasury yields and the […]
Should I Buy Chinese Stocks?
Over the last few decades China converted itself from an isolated state run economy into an economic powerhouse. Along the way many who were able to invest in Chinese companies did well. But the question for new investors is should I buy Chinese stocks today? A glance at an article in Bloomberg Markets indicates that this might not be the time while Chinese stocks fall their most in three weeks as traders bet on a weakening Yuan.
Chinese stocks dropped the most in three weeks, led by industrial companies and small-cap shares, amid concern that a weaker yuan will limit prospects […]