Thursday, February 24, 2011

Crisis Investing -- 4 Sectors You Must be in Now

Spring comes early in central Florida. Wrens sing, wild jasmine flowers in the woodlands. Today, as I write this, I'm in a quiet, small town cafe. Both customers and the early-morning sun are slowly filtering in -- a peaceful, idyllic scene.
But ... reality is in the headlines. North Africa aflame. Dire warnings of fiscal catastrophe here at home. Conservative governors clashing with suddenly indignant public employees. One gets the feeling that things could spin quickly out of control.
So how does one invest in this environment?  Read the Full Article Here

Collapsing Bonds? Look at the Trends Now!

Did collapsing bond markets last November signal the end of the three decade-long bond bull market? Almost all bond ETFs peaked on or near November 4 of last year. Since then some (perhaps unexpected) trends have emerged.
ETFs are useful trend indicators. Since they are composed of dozens, even hundreds, of securities, individual security movements have little effect on price. Lets look at five ETFs to see what is happening.  Read the Full Article Here

Monday, February 14, 2011

Housing's 50% Off Sale -- Time to Buy the Home Builders?

Commodities are shooting up -- 20% or more -- in just the last 3 months. The most common explanation? Accelerating inflationary expectations. No sign of this in the U.S. housing market though. That market drags along near multi-year lows. Indeed, the one asset the Fed wants to inflate, housing, shows few signs of revival.
But, is the housing market now bottoming? Well, maybe. After falling over 50% the last 3 years Zillow says my central Florida house has actually increased in value two months running now. Nothing to get too excited about -- total increase is less than 3%. Nonetheless, it is welcome news.
Why It Is So Hard to Reflate the Housing Market   . . .  Read the Full Article Here

Thursday, February 10, 2011

How Former Canadian Income Trusts Can Protect Bond Investors From Dollar Debasement

Bonds, especially Treasuries and municipal bonds (munis), are a major component of American retirement portfolios, be it pensions, IRAs, annuities, or mutual funds.
The recent sharp fall in bond prices, which started last November, has sent tremors through fixed income markets. With an apparent end to the 30 year old bull market in bonds, it may be time to look at alternatives.
How Safe Are Treasury and Municipal Bonds?
Treasuries, munis, and other bonds may have hit their highs early last fall. Since then -- about the same time Quantitative Easing 2 (QE2) kicked in -- things have been mostly downhill for bonds.
Treasuries have the full backing of the U.S. government,   Read the Full Article Here