Daily Posts Archive
Forecasts were all gloom and doom for Black Friday, with the media predicting a huge pullback in consumer spending. But on Monday, numbers were released showing that shoppers had actually increased their spending over the same period last year. Many media outlets are still predicting less shopping in the weeks before the holidays and spending was way down leading up to Black Friday, meaning the boost may not do much to help ailing retailers.
You can believe the United States’ best days are over and we are slowly slipping back toward dependence and bondage. Or you can believe that “good old American ingenuity” will allow us once again to “overcome the challenges that lie ahead” and retain our position of global leadership. Or you can choose something in between. Me, I’m an optimist, not least because life is a lot more fun when you look on the bright side. It makes you healthier, more productive, and more fun to be with.
A few years ago, (January 2006, actually) during my annual physical exam, my doctor gave me a stock tip. I knew that he was aware of what I do for a living, but we hadn’t ever talked about stocks or investing or anything other than how to get my cholesterol down. I was so surprised that I think my blood pressure actually spiked! But there my very own Primary Care Physician was, telling me about how a drug rep for a big company had dropped a name on him during a sales call.
The past weekend brought the news that you can now pay $149 to get your child’s DNA tested to determine whether you’ve got a future Olympic athlete or NFL Hall-of-Famer on your hands ... or a first class couch potato. The focus of the genetic test is the ACTN3 gene, which instructs the body to produce a protein, alpha-actinin-3, that is found specifically in fast-twitch muscles ... the muscles most valuable in power and speed sports. In brief, the makeup of the gene helps determine whether a person might be better suited for sports that require power and strength, or endurance, or general activity ... or none of the above.
I hope that you had a wonderful Thanksgiving and that you’re recovering well from your turkey hangover. Thanksgiving is when we celebrate all that we are grateful for, but it’s also a holiday of retail deals, holiday sales and shopping. Many Americans start their seasonal gift buying on Black Friday, but if you didn’t join the shoppers yesterday , or if you have more presents to buy, this issue is for you. Today I’m going to highlight some of the best books for the investor on your gift list, all recommended by the Cabot editors.
Happy Thanksgiving! I’ve written in the past that dividend investments can be a solid piece of your portfolio. I prefer growth stocks, and in that realm, dividends are basically meaningless. However, with more and more stocks, trusts, exchange-traded funds and the like, there are definitely intelligent ways to invest for yield. But beware of the supposed free lunch on Wall Street, because there is no such thing. Double-check the safety of the dividend before you jump in.
Yesterday afternoon, my wife and I returned from a two-week trip to India. The experience was absolutely marvelous, rich in warmth and beauty, yet at the same time colored by the substantial economic challenges that face the country of 1.1 billion people. While I was gone, the Dow dropped another 10%, the S&P 500 lost 14% and the Nasdaq plunged 16%. Happily, all our Cabot growth-oriented letters have been recommending a heavy cash orientation for many months so this continued erosion has brought little pain.
Last week I ranted about overspending by American consumers and I received many interesting responses through email and the blog. I’ve included some of the best rants in today’s issue, but if you haven’t sent yours in, feel free to do so at any time. Enjoy!
To say that we live in historic times would be an understatement. We’ve all been shaken by more earth-shaking news in just the past few months than we’ve seen in the prior decade. There’s been the takeover of Fannie Mae and Freddie Mac, the disappearance of Lehman Brothers, Bear Stearns, Washington Mutual and Wachovia, the TARP rescue plan and now the potential bailout of the Detroit automakers. Oh, and did we mention hedge fund redemptions and failures, and now commercial real estate problems?!? And the market, of course, has reacted.
I don’t mind telling you that these are scary and depressing times for investors. One wave of bad news no sooner breaks over us than another one--even bigger--appears. The American banking and auto industries are circling the drain, and the Dow, which was within spitting distance of 14,000 just a year ago is now, having cracked the 8,000 level, trying to decide whether to rest there for a while or just plunge further. All in all, it’s enough to make you turn off your TV, limit your newspaper reading to the sports and funnies and abandon your computer for your game console. At least in World of Warcraft, you know the rules.