Archive | September, 2013

It Works, But It Doesn’t Work All The Time

One of the constants in investing is that investment theories are disbelieved, prosper, bloom, overshoot,  die, and repeat.  So is the only constant change?  That’s not my view. There are valid theories on investing, and they work on average.  If you pursue them consistently, you will do well.  If you pursue them after failure, you […]

Continue Reading

The Fed’s ‘No-Taper’: Season 6 of ‘Breaking Ben’?

On September 18th, the Fed announced that it would continue its bond buying spree called ‘QE3’.  QE3, if you haven’t been listening to any financial press, is the Fed’s monetary policy after the respective QE1 and QE2 (‘QE’ means Quantitative Easing).  QE1 and QE2 didn’t get the economy started, so QE3 was invented.  With QE3, […]

Continue Reading

43% – Not What Many People Think

Here we go again. The Tax Policy Center estimates that for 2013, 43% of all tax household will not pay any federal income tax. That figure is down from 2010 when it was 47%. Actually the percentage has been decreasing since 2009 when it hit a haul all time high of 50% The Tax Policy […]

Continue Reading

The Rules, Part LII

ge + E/P > ilongest bond Let me explain.  The first term is the growth rate of earnings for a company.  The second term is the earnings yield of a company.  The last term is the yield on the longest, most subordinated bond or preferred stock a company has issued. The idea here, is that […]

Continue Reading