This looks like an interesting resource for new investors or parents interested in teaching their kids about investing. I haven’t read all of the articles, but there is bound to be a couple of good ones. If any particular ones stand out – leave a mention in the comment section.
Faber likes Cash, Farm Land and Precious Metals for 2007
I have mentioned several times on this site that it may be wise to pay close attention to Dr. Marc Faber’s commentary. Born in Switzerland and living for a number of years Hong Kong; he considers himself a world citizen.   Thus, he provides a non-US based perspective which is very valuable in what has truly become a global marketplace. He favors investments that are the least correlated to asset markets for 2007. Here is his current thinking. Continue reading “Faber likes Cash, Farm Land and Precious Metals for 2007”
High-Cost Mortgages Putting Many Homeowners at Risk
Where there is crisis there is opportunity. Earlier this year I made a few bucks shorting Sub-Prime Lenders. Say what?  First, there are two ways to make money in the market – either buy low and sell high (that’s known as going long) or sell high and buy low (that’s known as shorting). Most professional traders could care less if the market is going up or down; they profit as long as they get the direction right. So, if you believe that a stock is going to fall – short it to make money. Continue reading “High-Cost Mortgages Putting Many Homeowners at Risk”
One Income, Two Retirements
One Income, Two Retirements – seems to be a thing of the past. Most families need both husband and wife working to make ends meet. The concept, however, is still applicable as spouses move in and out of the workforce for numerous reasons.
Source: Business Week Online
IRAs for nonworking spouses let you build your own nest egg — and in many cases, the contribution will be tax-deductible
Spouses drop out of the workforce for all sorts of reasons — to rear children, write a novel, or just get away from it all. Such noble pursuits have one serious drawback, however: Often, they mean leaving behind company-provided retirement-saving plans. Also, individual retirement accounts, 401(k) plans, and Social Security benefits are generally geared toward providing retirement income to people who earn salaries. Couples that include one working and one nonworking spouse face funding two retirements out of one income. And that challenge is magnified if something happens to the employed partner — as was the case with many families affected by the September 11 terrorist attacks.
All of these are good reasons to plan ahead for every contingency. When it comes to retirement, that means creating and contributing to a spousal IRA — starting right now. The spousal IRA allows a married spouse who files jointly to contribute $2,000 a year to both his and her IRAs, as long as the working spouse earns at least $4,000 a year. This type of IRA can be either a traditional plan funded with pretax dollars if the contributor is eligible or a Roth IRA funded with aftertax dollars.
Dennis Gartman’s Not-So-Simple Rules of Trading
Last Monday shareholders of Phelps Dodge, a member of the Big-Build Out portfolio, received an early Christmas present. Freeport McMoran placed a bid to buy the company at a 27% premium. Instantly all shareholders were 27% richer, simultaneously all shorts were 27% poorer. This was a big news story, so CNBC reporters went to work. Later on that day, Dennis Gartman was interviewed on CNBC. Gartman had been betting that cooper’s run was over extended. Instead of shorting the commodity itself, he choose to short a major cooper producer (Phelps Dodge). Ouch.
Before that day, I had never heard of Dennis Gartman. Turns out that he is a well respected and well known trader. He publishes the Gartman Letter that is a must read among professional traders.  He should be commended for coming on CNBC on a day in which he had taken such a pounding. So many come on that network- tout their stocks and are never heard from again. Needless to say, he lost mega-bucks on this trade.  He stated that this had turned a good year into a mediocre one. I was most impressed when he said that he immediately closed his position. He didn’t try to rationalize the situation. He cut his losses and moved.
I discussed a similar situation in my article, “Navigating Thru a Trading Fiasco.” I cut bait on Enerplus Resources, a Canadian Income Trust, after the Canadian Government announced a new tax on such entities. The article generated a nice discussion – see comments to article.
I just ran across Gartman’s Not-So-Simple Rules of Trading. Each year he updates the list. I believe this is his latest and greatest.  Here are my favorites: Continue reading “Dennis Gartman’s Not-So-Simple Rules of Trading”