For over a year I have warned against investing in municipal bond funds, because I believed that there would be some fallout from the credit crisis affecting this market segment as well, which turned out to be correct. The weekly table in section 7 of my StatSheet (see table above) clearly showed that most of the muni funds I track …
Sunday Musings: The Next Mortgage Shock
Wall Street, along with many investors, seems to long have forgotten Subprime mortgages, which ignited the economic crisis we’re currently in. However, there are other dangers lurking which most people are not aware of. I am talking about the upcoming recasts of Alt-A (liar loans) and Pay-Option ARM mortgages (less than interest only loans). The more recent focus has been …
Looking At The Big Picture
It’s easy to get caught up in the day-to-day news barrage and meaningless market fluctuations on Wall Street. Additionally, endless discussions as to whether we have hit a permanent bottom or not add to the confusion. My point has always been that it’s far more important to focus on the bigger picture, which is why I look at major trends …
No Load Fund/ETF Tracker updated through 12/18/2008
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpDespite a celebratory rally, caused by the lowest interest rates ever, the major indexes made no noticeable headway this week. Our Trend Tracking Index (TTI) for domestic funds/ETFs remains below its trend line (red) by -8.51% thereby confirming the current bear market trend. The international index now remains -21.01% below its …
Who’s Responsible?
Many readers have complained about the poor handling of the credit crisis by the government along with the bailout orgy involving many industries at tax payer’s expense. Who is really at fault for the problems that plague this country? To get closer to the truth, the following was sent in by a reader referencing an article written by Charlie Reese, …
Reaching ZIRP
Even though it might have been the worst kept secret of the year, The Federal Reserve, in an unprecedented move, set its key interest rates at 0% to 0.25%—the lowest level in history. This makes the U.S. the first country to actually implement ZIRP (Zero Interest Rate Policy). Surely, others will follow as the global recession deepens. Like a drunken …