Instead of me boring you with my weekly thoughts, I have attached links to articles or videos. Each one is on a different subject; however, I hope you find them all insightful. The theme of some of these interviews is basically the current stock market rally has possibly created an overly optimistic outlook for investors in the short-term. Yes, the economic conditions are improving; however, the stock market may be expecting too big of a recovery and too soon. Just because you have a 60 degree day in early February (in KC), it does not mean spring is upon us. We should be realistic and keep our winter clothes out. As such, the market may need to back off some as a more muted reality takes place.
That being said, I have been encouraged with recent conversations I had with realtors and a home builder. Both have stated that they’ve seen an increase in activity. However, I still hold to the belief that it won’t be until next year that we see much more stabilized and gradually improving and growing economy, which is what the stock market needs for long-term gains.
Links to insightful information
- I’ve found Ben Stein to be a very thought provoking individual over the years. The attached link is to a recently published article about how not to ruin your life.
http://finance.yahoo.com/print/expert/article/yourlife/170370
- The following is a link to an article on Loomis Sayles bond fund manager Dan Fuss. I believe you will find his comments as they relate to bond / fixed income investing, the market and the economy of interest.
http://www.fundstrategy.co.uk/cgi-bin/item.cgi?id=183144
- There are currently several bills before the House and Senate that would be quite beneficial to taxpayers. One would raise the age for required minimum distributions from IRA from its current age of 70 ½ to 75. Another would repeal the 1193 increase in income taxes on Social Security benefits, and one bill in particular would raise the capital loss limit from its current $3,000 per year to $10,000 and then index for inflation going forward. For more details please quick the following link: http://www.investmentnews.com/article/20090616/REG/906169990
I believe each of these bills would be a great help for taxpayers; however, whether they pass is not something we can bank on currently. Let’s hope for the best.
- This link is to an interview with a hedge fund manager and is titled, “Lack of Regulation Didn’t Cause the Crisis and More Rules Won’t Prevent the Next One.” If you have approximately five minutes, I believe it is worth your viewing.
http://finance.yahoo.com/tech-ticker/article/264583/Lack-of-Regulation-Didn
- The attached link is an interview with a professional who believes the stock market may have recently peaked and could retract in the coming months. Trust me, even if this professional’s analysis is true, it is not the end of the world. It just means that the market will not shoot straight up from here, and actually may retract or decline before entering a new bull market. I am including it because I believe we need to continue to keep our emotions, (fear or greed) in check.
Frugality at its finest!
The following is completely outside the norm for the weekly commentary. However, I truly appreciate seeing someone get the most for their money, and this is a GREAT story about an older woman and her car. She has driven this car 540,000+ miles – enjoy this 3 ½ minute video.
http://growingbolder.com/media/technology/vehicles/romancing-the-road-259598.html
Quotes
“Reality is that stuff which, no matter what you believe, just won’t go away.”
David Paktor, software engineer
“Our best friends and our worst enemies are our thoughts. A thought can do more good than a doctor or a banker or a faithful friend. It can also do us more harm than a brick.”
Frank Crane, minister, speaker and columnist
“Strategy is better than strength.”
African proverb
Tony Moeller
The information listed in this commentary is a compilation of various publicly available sources and is for informational purposes only. It is not a recommendation or solicitation of any particular investment or strategy. A risk of loss is involved with investments in the stock and bond markets.
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