Friday, October 16, 2009
People don't understand that money doesn't have to be printed or even minted in today's society; it is simply electronic, adding zeroes to the end of a large number, which continues to grow. (more)
When was the last time you saw stocks (NYSEArca: VTI - News), bonds (NYSEArca:
AGG) and commodities (NYSEArca: DBC - News) move in sync for nearly two years?
When was the last time asset allocation did not really provide the diversification and protection it was supposed to?
When was the last time, a ten year investment in the stock market delivered negative returns?
Investors that care to harken back 80 years will find that the 1929 - 1932 era is the only period of time that compares to today. In fact, the parallels between now and then are bountiful and scary. (more)
Former U.S. Labor Secretary Robert Reich believes that the Dow’s recent rally to the 10,000 mark is “fluff” that has no relation to the real economy.
Reich, a professor and Clinton-era Labor Secretary, now an informal economic advisor to President Obama, says that “anyone who hasn't learned by now that there's almost no relationship between the Dow and the real economy deserves to lose his or her shirt in the Wall Street casino.”
Reich wonders how the Dow broke through the 10,000 barrier, last seen before the economic meltdown in the United States when, as he put it, “the rest of the economy is in the toilet.” (more)