Investment Implications of Biden Agenda
What are the investment implications of the Biden agenda? President Biden will introduce a stimulus plan aimed at defeating the covid-19 epidemic and driving the US economy to an impressive recovery. How will it affect your investments? Because the Democrats will control the White House and both houses of Congress, we expect initial Biden proposals to pass. We have written about investing during the Biden administration and the potential for a Biden bull market. Now that the next President has laid out his plan with the details, there is speculation that foreign direct investment […]
Investing During the Biden Administration
The prospects of investing during the Biden administration changed dramatically when Democrats won the two senate seats in Georgia. Now the bulk of legislation including another stimulus will progress unimpeded, at least in the beginning. A lot has been written about Biden stocks to buy and stimulus stocks to be in the run up to the election but there was always the likelihood of a fight with the Republican controlled Senate. Although every vote in the Senate may require a tie breaker vote by Vice President Harris as President of the Senate, Biden […]
How High Will Bitcoin Go?
Bitcoin is on another rally. The one in 2019 ended in a crash. How high will bitcoin go in 2021 and then what will happen? Year ago at the start of 2020 bitcoin was valued at $7,347 and today it has risen to $31,646. The bulk of the rally has been since October 2020 when bitcoin sold for just over $10,000. This is similar to 2017 when it finished September in the $4,000 range and nearly passed $20,000 in December. The questions today are not only how high will bitcoin go but how fall […]
Long Term Effects of a K-shaped Recovery on Your Investments
The economic recovery from the Covid-19 crisis is turning out to be a classic “k-shape.” In a k-shaped recovery different parts of the economy recover at different rates or perhaps not at all. The question of investors is what are the long term effects of a k-shaped recovery on your investments? This year tech giants like Apple and Microsoft have done very well as the world pivoted to working and staying at home. Travel and hospitality businesses have done poorly and are not recovering anytime soon. What does this situation tell us about […]
Investment Risks 2021
Investors have grown accustomed to putting money in the stock market and seeing it grow. But, there are investment risks 2021 poses that may change that. Low interest rates have a market driver for a dozen years. When the economy gets back on track, rates may go up and end up driving stocks down. And, the recent Covid-19 mutation in the UK reminds us that nothing is secure in the world of infectious diseases and their effects on the economy. After taking into consideration investment risks 2021 may still be a good year but as bit of foresight might be a good idea.
How Can a Stimulus Help the Economy?
The Covid-19 pandemic sent the US economy into the worse fall since the Great Depression. Things have still not recovered and whole sectors of the economy suffer substantial, lasting unemployment. Congress is haggling over stimulus measures. How can a stimulus help the economy?
IRS Bitcoin Trap
The IRS tax form for 2020 will ask if you bought, sold, or had any financial interest in any virtual currency. You will need to answer yes or no. This IRS bitcoin trap is another step in the Internal Revenue Service tracking down those who did not report money gained from buying and selling cryptocurrencies. The question will be near the top of Form 1040 and hard to miss. It appears that the IRS is going to be treating hiding cryptocurrency gains like they have hidden offshore bank accounts.
Earning Potential of an Investment
The point of investing is to make money on your money. Judging the earning potential of an investment is basic to making this work. This is the case for both long term investors who buy and hold for years and for stock traders who attempt to time the market in search of short term profits. The earning potential of any investment depends on appreciation in value, realized earnings in the short term (dividends), and the value of the currency in which the investment is denominated. The last factor is affected by inflation and the volatility of the Forex market.