I’m surprised!!! But not entirely…

Last night at 11 PM the S&P 500 stock market futures were down 800 points in expectation of a debacle in the financial markets, stemming from the uncertainty created by Donald Trump’s victory in the presidential election. I came to work early expecting chaos. Surprise! Markets are largely up, while interest rates have slightly increased and gold is up slightly. I am guessing that investors looked at the real data and decided that the immediate...

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What is different about the S&P 500’s longest losing streak in 8 years…

…Is that it’s a paper cut. Most days the market has barely declined at all. We don’t know what will happen. So far, not much. To prevent becoming too concerned about day-to-day price volatility, check out this ultra-long stock market chart here. Fascinating! Investing works. Stay the course…even if it gets a bit bumpy.

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Will Food Stocks Become a Bargain?

Check out this report. I’m reading this as mild price deflation. Once the dust clears we’ll look for bargains in food production. I’m also expecting that at some point soon we should be able to invest in legal marijuana farming via a mutual fund. At the moment, the bargains aren’t there. Yet.

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Getting our shovels ready.

Last week, we attended Charles Schwab & Co. Inc.’s IMPACT investment conference. My perception was that the “consensus” opinion by experts there was for very low returns to all generic investment classes for the next decade. We should keep in mind that the “consensus” is often wrong. Now I’m watching overwhelming news which indicates that whoever is elected President next week is likely to have a very tumultuous four year term, complete with possible violence...

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How to create wealth which lasts generations

One of my fascinations is how to pass on wealth between generations. It amazes me how people can succeed magnificently at wealth transfers, and can even prepare the following generations for wealth which they themselves never enjoyed. Or sometimes they can blow things to shreds. Life is a lot harder than we would like to realize, and providing for future generations in terms of education and actual wealth is a profound blessing. There’s a lot...

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Flash Crash in the British pound currency!

I’m guessing this is a good time to plan a visit to England. Today’s frenzy over the British pound is a good thing for British exporters too. It also illustrates why we tend to avoid ETF’s: too many technology-driven flash crashes.At some point soon I expect to go bargain hunting. Read more about why you should plan a trip to London here.

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Why the economy isn’t thriving: more insight

Last week we were in San Francisco listening to a presentation by Schwab’s chief economist, Liz Ann Saunders. My takeaway was that the economy is not thriving because of a. excessive debt in the system. b. complexity. The excessive debt may or may not have prevented a depression but its legacy is gargantuan payments to keep from defaulting. These will only become larger as interest rates rise. The complexity is due to technological change and...

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