What Now? (Part Two)

The next issue of our, bi -weekly newsletter, STAT is available. You can access it here. If you'd like to receive our email newsletter, you can click the "Sign up for our Email Newsletter" link on the right of this page.

Because it's Tuesday

This brief article is a good example of what we call "Because it's Tuesday". That is, the explanation for short term price movements (noise) in the markets. In this piece, the writer says "investor anxiety" is the reason. Really? How do they know?

Job Creation

This is an excellent article by Caroline Baum on the role of government in job creation. As she states "the job of government is to provide an environment in which the private sector creates this (jobs)". Well put.

Debt & Savings

A very good summary of the debt issues facing those nearing retirement age. If anything, the percentages of folks in their 60's with substantial mortgage debt exceed those outlined in the article. 20 years ago almost none of our clients that age had mortgages, today it is the rule. As the article points out, this age group in general has too much debt and too little savings. Not much of a formula for an enjoyable retirement.

Hysteria and Hyperbole

This is a good example of the near hysteria of journalists "reporting" on the markets. The writer makes some good points but sets them within the context of the markets coming off the worst August in a decade (a good deal of volatility in both directions) and entering historically the worst month of the year. Why does any of that really matter except we need the volatility in order to accrue the long term returns. The "what to do now" syndrome seems to dominate the media at present much to the detriment of most investors.

Infrastructure Spending and Priorities

An interesting 2008 chart from NYT on infrastructure spending. Looks like $ is not the problem, politics is (big surprise). Economics centers around choices. When we make poor choices, resources are allocated improperly to one area to the detriment of another area.

Of Men and Markets

Professor Shiller provides an interesting perspective in this article. As he notes, despite the evidence to the contrary, many investors practice the "beauty contest" approach.