Profitable Investing Tips
When Should You Start to Buy Stocks Again?
Economists are already saying that the coronavirus pandemic
will drive the world economy to levels not seen since the Great Depression. In
our article, How Far Could Stocks Fall, we noted that the 1929 stock
market crash (which ushered in the Great Depression) was not limited to October
of 1929. The market continued to fall until late 1932 by which time the Dow
Jones Industrial Average had lost 90% of its previous value. Anyone who has
cash in hand will have many opportunities to buy excellent stocks at bargain
prices when the market bottoms out. But, when will that be? When should you buy
stocks again?
When Should You […]
Is Now the Time to Invest in GE?
General Electric is an American conglomerate originally formed by a merger in 1880 of the Edison General Electric Company (started by Thomas Edison) and Thomson-Houston Electric Company. It was one of the original stocks in the Dow Jones Industrial Average in 1898 where it was listed most of the time for the next 122 years. The high point for GE stock was $59 a share in June of 2000 before the dot com crash. It fell to $23 a share by late 2002, rose to $41 a share by 2007 and fell during that […]
Beware of Volatility in Your Investments
Market volatility is caused by uncertainty. Today the coronavirus is ravaging America and the world. The twin threats of a massive death toll and a severe and long term recession have rightfully spooked many investors. And, stock market volatility is the highest since the early days of the 1929 stock market crash. We have posed the question, how far could stocks fall? A close look at the market crash that started in 1929 shows that it did not end until three years later in 1932. Incidentally, the market bottom and beginning of a […]
Is Berkshire Hathaway a Good Investment?
The stock market has taken a big hit with the double whammy of the coronavirus pandemic and an oil price war between Saudi Arabia and Russia. Considering that things could get even more difficult before they get better, we wrote recently about safe investments for a ten year recession. In general, we stick to general principles for investing in stocks and only mention individual investments as examples. However, there is one investment opportunity in the current market mess that we believe is worth looking at. Warren Buffett’s company has been stockpiling cash for a […]
Safe Investments for a Ten Year Recession
As the coronavirus continues to spread and claim lives across the world, the markets have plummeted and people in the “informal economies” of the world are without work or food. As we wrote in our article, How Far Could Stocks Fall, we reminded our readers that the stock market crash that started in 1929 did not end until 90% of market value was gone three years later. The economy was further damaged by an ill-advised trade war (Smoot Hawley Tariff) and the evaporation of credit. Historians may decide in years to come that the […]
Mobilize to Save the Economy
Everyone is rightfully scared right now. A deadly virus is spreading across the world, killing people, and devastating whole societies and economies. Despite being slow to react, governments across the globe are enacting social distancing measures to slow the spread and impact of the virus and struggling to get needed medical equipment before current supplies run out. With so many people in the USA living paycheck to paycheck and people across the world living day to day, the necessary shutdown of many businesses threatens to have devastating consequences. We wrote recently about how […]
Investing in Potential Coronavirus Treatments
When the coronavirus epidemic started to spread we wrote
about investing in pharmaceuticals and the coronavirus. We noted
that a vaccine is a long way off and that a better short term investment
strategy would be invest in companies that make hand sanitizers, general
cleaners, masks, and other immediately necessary items. While it will take some
time (12-18 months) to devise and produce a vaccine, medicines to treat people
with coronavirus could be available sooner. Such medicines would not make the
pandemic go away but they would alleviate suffering and reduce the number of
deaths from this modern day plague.
What Sorts of Treatments Are Possible?
Modern science has found […]
Dividend Stocks to Weather the Market Slump
The stock market continues its downward course as many fear just how far stocks could fall. Interest rates could possibly fall below zero. Meanwhile, there are dividend stocks to weather the market slump.
Dividend Stocks to Weather the Market Slump
An article on The Motley Fool caught our eye. They note that well-managed, well-placed businesses with solid balance sheets will be an ideal refuge during the prolonged market slump. They, in fact, recommend three high-yield dividend stocks.
COVID-19 cases are steadily increasing in the U.S., and states are taking drastic action. California recently placed its nearly […]
How Will Negative Interest Rates Affect Your Investing?
The U.S. Federal Reserve has slashed already-low interest rates to zero. They are taking other measures to preserve credit and pump money back into the system. But, the steady spread of the coronavirus and predictions of 20% unemployment and worse are unsettling markets as investors wonder how far stocks will fall. As the economy contracts we will see the possibility of interest rates going below zero. How will negative interest rates affect your investing?
How Will Negative Interest Rates Affect Your Investing?
Forbes wrote a useful article a year ago about the damage negative interest rates would […]
How Could Debt Destroy Your Investment Portfolio?
Despite Presidential assurances to the contrary, the coronavirus is taking hold in the USA as well as everywhere else in the world. The stock market has tanked and one question is how far stocks will fall. The other is if this will be so bad that it leads to an economic collapse. A major factor today that puts your investments at risk is the high level of corporate debt. How could debt destroy your investments?
How Could Debt Destroy Your Investments?
Despite the Fed buying treasuries and reducing interest rates to nearly zero, the market is […]