Posts Tagged ‘stock’

“It’s EZ credit that is the linchpin in today’s fake-money system.

The Deep State’s stocks, bonds, and real estate values… not to mention its careers, incomes, and reputations… depend on it.

And it is made possible by the China trade… by Chinese workers who put in long hours in miserable conditions in order to stock the shelves of Walmart with cheap goods… by Chinese manufacturers who undersell their competitors to keep consumer price inflation in the U.S. at low levels… and by Bank of China, which holds some $1.25 trillion worth of U.S. bonds… thus propping up the whole wobbly capital structure….

In politics and economics, BS is all there is. The calculations are almost always fake; the statistics are quackery; the theories are devilish nonsense. And bad ideas never entirely disappear, they just re-emerge after a few years… often dressed in new duds.”

-Bill Bonner

“…the world has been binging on debt like never before.

The International Monetary Fund reported last month that total nonfinancial-sector debt has ballooned to an all-time record of $152 trillion… while the global debt-to-GDP ratio has also soared to an all-time high of 225%, up from 200% just 14 years ago.

Worse, we’re seeing record debt at the government level, the corporate level, and the consumer level (via auto and student loans, in particular). The boom in corporate borrowing is especially concerning…

U.S. companies have already borrowed $1.4 trillion this year to date, according to data firm Dealogic. This is on pace to shatter last year’s previous all-time record of $1.5 trillion.

Unfortunately, most are using this money to refinance existing loans… buy back stock and pay dividends… and finance expensive (and often questionable) mergers and acquisitions. This will do little to help the economy. But it greatly increases leverage… and risk.” -Justin Brill

“Research firm Dalbar publishes an annual study on investor behavior called the Quantitative Analysis of Investor Behavior (“QAIB”).  Every year since 1994, the QAIB has compared stock market returns over the previous decades with returns earned by real investors.  The result is always the same: The market beats the investor.

For the 30 years ended December 31, 2015, the S&P 500 returned 10.4% per year, on average.  Equity mutual fund investors earned an average return of just 3.7% per year.

To make plenty of money in stocks, you must behave better than the vast herd of investors.  A single behavior – refusing to sell at market bottoms – would have multiplied profits nearly tenfold.” -Dan Ferris

Cash Problem

Posted: October 25, 2015 in Money Matters
Tags: , , , , , , ,

“I’ve never heard anyone in the popular financial community say it.  All they talk about is stock returns, 401(k)s, or some new trading program.  Another camp will tell you to save more by spending less money on coffee or cutting out your trips to restaurants.  This is—if you’ll excuse the correct word—bullshit.

The way to solve the problem you have is by generating extra cash.  Others won’t tell you this because (a) there’s no benefit to them in saying it and (b) most of them have no idea about how to actually do this.” -Mark Ford

“You cannot reach financial independence through stock investing and options alone.  You need to increase your income through different avenues and opportunities.” –Mark Ford

Perhaps others are unaware, as was I, that after the initial public offering (IPO) of a company, that company receives no capital benefits from the trading that occurs on Wall Street.  Wall Street is basically a “financial product” used to help generate profit for these entities, in which they provide a “return” to the investor (or stock purchaser).  Mutual Funds are one such financial product.

“Actual wealth, or capital, is transferred to a corporation at the time of the initial public offering of the stock, or IPO.  This, however, is a one-time event.  For all the daily trading these exchanges perform, they provide no capital whatsoever for American industry.” -L. Carlos Lara     LMR     May 2013