Will Inverted Bond Yields Cause Your Investments to Crash?

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Will Inverted Bond Yields Cause Your Investments to Crash?

By Jim Walker on Monday, September 16th, 2019 | Comments Off

At the beginning of last year, we asked if you should be concerned about the inverted yield curve. The fact is that many previous market crashes and recessions have been preceded by “inversion” of rates on long term versus short term bonds. The timing of this “predictor” is such that it may be a year or two after bond rates change that the market crashes or the economy suffers. There are two questions here for investors. One is whether or not this episode of interest rate inversion will be followed by a collapse of […]

Bitcoin Pump and Dump Again?

By Jim Walker on Friday, September 13th, 2019 | Comments Off

And a bitcoin security warning

Remember the 2017 Bitcoin pump and dump? It seemed like an epic bull run for the cryptocurrency but ended in a crash. Bitcoin started 2017 just below $1,000 and rose during the year. Bitcoin “enthusiasts” hyped the cryptocurrency as the “investment “of the future while long term successful investors called it a scam. After Bitcoin fell from the $20,000 range to the $3,000 range at the end of 2017, all of the Bitcoin hype went away, for a couple of years. However, it appears that we are seeing a Bitcoin […]

Why Invest in Berkshire Hathaway?

By Jim Walker on Tuesday, August 27th, 2019 | Comments Off

Warren Buffett has become one of the richest men in the world by using intrinsic stock value as a guide to investing for Berkshire Hathaway. But, Berkshire Hathaway is now a huge company with multiple holdings. There is a temptation to say that it has reached a mature state where there is not much more room to grow. Is that true? We don’t think so. So, why invest in Berkshire Hathaway today? The first reason is that the stock is undervalued.

Is Berkshire Hathaway Undervalued?

The Motley Fool says to in their article about three reasons […]

Ready for the 2020 Recession?

By Jim Walker on Saturday, August 17th, 2019 | Comments Off

The recovery from the Financial Crisis has been impressive and prolonged. However, a combination of factors is causing headwinds that the US economy may not be able to overcome. While pundits in the media, social and print, argue both sides of the issue, the bond market is betting heavily on an economic downturn. Are you ready for the 2020 recession? Here we will look at why next year is likely when the economic “ax” will fall and then what you can do to protect your investment portfolio.

Will There Be a Recession Starting in 2020?

The […]

Silent Warning for Investors

By Jim Walker on Thursday, August 8th, 2019 | Comments Off

The man who is perhaps the greatest investor ever is silent and that should concern investors. Warren Buffett is the prime example of a long term, buy and hold investor who totally believes in the power of the US economy and the US stock market to grow wealth. Buffett’s net wealth was about $10,000 in the middle of the 20th century and today he vies with Jeff Bezos and Bill Gates for the title of the richest person in the world with more than $80 Billion in net wealth. Buffet would, in fact, be […]

Investing During a Permanent Trade War

By Jim Walker on Friday, August 2nd, 2019 | Comments Off

In the last year and a half we have looked at the evolving trade war between the US and China and, to a degree, between the US and everyone else. As the situation has evolved, we are now looking at investing during a permanent trade war. Here is how our thinking has evolved. To begin with, we appear to have been overly optimistic. In March of 2018 we asked what can you invest in and not get hurt by a trade war. At that time our belief was that companies in entertainment, like Disney, […]

Are Stock Buybacks Dangerous?

By Jim Walker on Monday, July 22nd, 2019 | Comments Off

Much of the windfall that U.S. corporations experienced with the Trump tax cut went into buying back their stock. The stock buybacks accomplished their intended purpose which was to support or drive up stock prices. This has helped keep the stock market rally going. But, is there a dark side to all this? Are stock buybacks dangerous at some level?

Stock Buybacks

Investopedia poses the question, why would a company buy back its own shares?

The most visible result of share buybacks is that it preserves or increases share price. But, there are three other good reasons […]

Annuities Pros and Cons

By Jim Walker on Tuesday, July 16th, 2019 | Comments Off

One of the safest ways to save for retirement is with an annuity. This is a contract offered by an insurance company. You pay them in installments or with a single lump sum and they pay you back on a regular basis, usually starting when you retire. Your investment in the annuity is boosted by interest paid by the insurance company. This investment vehicle usually belongs in our list of choices for how to invest without losing any money. If the idea of annuities appeals to you, you need to know the annuities pros […]

Low Risk High Return Investments

By Jim Walker on Monday, July 8th, 2019 | Comments Off

You invest for two reasons. First of all, you want to put money aside for some future need instead of immediately spending it. Secondly, you want that money to make money over the years. You obviously don’t want to get into dumb investments and lose your invested money or you would have had a better time spending it! And, because there are things you want to do with that money eventually, you would prefer to see a healthy return on that invested capital. Many investors choose to split their investments into those with […]

Is Ford a Good or a Bad Investment?

By Profitable Investing Tips on Friday, July 5th, 2019 | Comments Off

Henry Ford invented the automobile assembly line a century ago and his company has been a major automaker ever since. But, how about today? Is Ford a good or bad investment as carmakers need to invest hundreds of millions in new technologies or fall by the wayside? This thought came to mind as we read an article in The New York Times about how Ford and VW are set to cooperate in developing both electric and self-driving cars.

Battery powered, self-driving cars have the potential to eliminate tailpipe emissions and avoid accidents […]

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