Total Consumer Debt Still Too High

A good piece today on all types of debt . While the emphasis is more on government debt, the point is made that consumers have not reduced their aggregate debt levels over the past few years (despite many reports that say otherwise). Credit card debt relative to incomes is slightly down (but incomes are slightly up) . Mortgage debt is essentially unchanged from the level 4 years ago but home equity is down by more than one-third. The premise of the article is correct- this level of debt overhang hinders flexibility and recovery.

Strategized Index Funds??

Saw this interesting article on many index funds that are "upgrading" by "strategizing" their portfolios. The article says more than 20% of stock index funds have annual expenses greater than the average for actively managed stock funds of 1.36%/yr.Wow!

Lose the News

This is a great article the outlines the dangers of investing based on the news of the day. The 2nd point he makes is crucial- the vast majority of the news is irrelevant to you and your financial future. The charts showing "Media Market Timing" from the 1970's forward are rich.

Envisioning Your Financial Future

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Markets and Months

This is a quite good piece from the WSJ on the old adage (the history of which is explained) about selling in May. Actually, the stock market is driven over time by earnings which continue to be good. The 3rd year of a new president usually average around 13% return . We will see.

Housing-Time to Buy?

This is a great article on the background and outlook for residential housing. As the author states, who would have believed 5 years ago we would still be mired in a downward trending real estate market? Yet- here we are. The prices in many locales may have finally cleared so that a bottom can form. Affordability is certainly higher now and the demographic trends,on both ends (household formations and baby boomers downsizing) are positive.

Perception vs. Reality

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Bright Spots Yes,but not Very Bright

A good quick 1-5 overview of several key economic indicators that are good but just not great. Corporate profits, housing affordability ,household wealth etc. all point in the right direction but remain fragile.