Moral Dilemma: Should a Libertarian Who Does Not Need Food Stamps, but Qualifies for Them, Take Them?

Here’s the moral dilemma of the day:Suppose you are a staunch Libertarian, doing reasonably well and you don’t need food stamps. Yet, under perverse rules, you qualify for them. Should you take them? Reader Steven faces that exact question. Steven writes … Hi MishIn response to your article 40% of U.S. on Welfare; Obamacare Expands Welfare by 23 M…

Who’s afraid of the Big Bad Terrorist?

On Friday, the UK government raised its terror threat from “substantial” to “severe” as Home Secretary Theresa May warned of threats from jihadists from Iraq and Syria. Global stock markets sold off initially on the news, but recovered later in the day.The answer is an emphatic “yes”. As investors and traders, we should be focusing on fundamenta…

5 Things To Ponder: Labor Day Edition

August 29th, 2014 Lance Roberts The financial markets are set to wrap up the month with roughly a 3.5% gain, depending on where today’s action ends, which is historically on the positive end of returns for the month. The histogram below shows the annual percentage change for the month of August. Since 1930, there have been a total of 47 positive m…

What We’re Reading ~ Hedge Fund Links 8/29/14

Hedge funds hunt for clues in Treasury tax inversion limit [Bloomberg]The best short seller you’ve never heard of [HFIntelligence] Why you should avoid the hottest hedge fund hands [CNBC]Investor satisfaction with hedge funds falls [FINalternatives]Big funds continue to bring in the big money [Bloomberg] Dan Loeb’s comments on ThirdPointRe’s call [Se…

August Michigan Consumer Sentiment Bounced Back

August 29th, 2014 Doug Short The Final University of Michigan Consumer Sentiment for August came in at 82.5, a bounce back from the 79.2 preliminary reading and its highest level since the April final. Today’s number topped the Investing.com forecast of 80.1. See the chart below for a long-term perspective on this widely watched indicator. I’ve h…

Moving Averages: Month-End Preview

August 29th, 2014 Doug Short Here is a preview of the monthly moving averages I track after the close of the last business day of the month. All three S&P 500 strategies are now signaling “invested” — unchanged from last month. One of the five of the Ivy Portfolio ETFs, the PowerShares DB Commodity Index Tracking (DBC), signals “cash”, unchanged …

Sector Performance

The chart below shows performance of US sectors over the trailing 12, 6, and 1 month(s).  Performance updated through 8/28/2014. The performance above is based on pure price returns, not inclusive of dividends or all transaction costs.  Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.    Source: […]

ETF Scorecard – August 29th Edition

Major equity indexes inched higher during the week but gave into some light profit-taking pressures as Labor Day weekend approached. A lack of noteworthy developments overseas coupled with solid economic data releases at home left the doors open for the bulls; better-than-expected durable goods, consumer confidence, and an upbeat revision to U.S. GDP…

Two Portfolios. Pick One.

I’m going to show you two portfolios — I’m not initially going to tell you much about either one, but then you can consider which one you might like better.  Here’s portfolio A: And here is portfolio B: There is one obvious difference in the two portfolios: portfolio B has gone up more than portfolio […]

Stick to the Basics

One of the most important aspects to investing is creating a long term financial plan regardless of market behavior.  However, it’s one key piece that’s either missing or the financial plan is often aborted or derailed when emotions and rollercoaster markets hit. The Sketch Guy, Carl Richards discusses this poor association in his article  “I…

What if the Horatio Alger’s story hero is named Rajiv?

In this Age of Piketty, there have been more and more writing about the issue of income and wealth inequality. Three articles particularly resonated with me.Equality of opportunity, not wealthThe first was a piece from Richard Reeves of the Brookings Institute called Saving Horatio Alger: Equality, Opportunity and the American Dream.The article cited…