When countries run persistently large budget deficits, politicians will tend take the path of least resistance and inflate away the amassed debt by depreciating their currency. Our politicians in the U.S. are no different than the ones in other semi-developed countries. Oil and other basic commodities are priced in $$. As the dollar depreciates, the $ price of these commodities will rise. You are now seeing this in the price of oil and gasoline and other commodities. Therefore, what is a simple strategy to protect yourself against rising fuel costs? Why not buy shares in a very large integrated...

Instead of buying treasury securities directly from the Treasury or through a broker, buy an exchange traded fund (ETF) called 20+ Year Treasury Bond ETF (symbol TLT).  It trades exactly like a stock and has at least 95% of its assets in U.S. government obligations. The way to boost your return is by selling a call option against your position.  The buyer of the call option (each call option represents 100 shares) has the right (not the obligation) to purchase your 100 shares of TLT at a certain price (strike price) within a certain time limit.  For that right the call buyer will pay you cash (the...

Hello, The purpose of ANY investment is to increase one’s net worth. The term “net worth” applies to more than stocks, bonds, or real estate. You, your family, and your community can also be viewed as an investment. Thinking in terms of increasing one’s net worth forces individuals to expand their time horizons. What actions can I take today that will increase my net worth or value over the next 5 to 10 years?  For example, why do individuals invest their time and money in going to college or trade school?  Obviously, they are not making significant monies while attending school.   But,...

In our own unique way, we are all investors.  We are definitely all investors in time, but the majority American households also have investments in financial assets, namely stocks.  These equity investments can be held in a 401k plan, mutual funds, or an IRA.  This doesn’t count the good percentage of people that have a personal account they actively manage or trade. Divining the direction of the stock market can be as confusing as being a termite in a yo-yo.  So what would be a good simple gauge we could use to determine if the equity markets are overvalued or undervalued?  Price to earning...

Hello, Whether on a personal or business level, what is the most important criterion in making an invesment decision?   Is it rate-of-return? The paramount investment criterion whether you are purchasing a stock, bond, business, etc. is the Suitability of that particular investment in relation to your financial psychology or business makeup.   No matter how good an investment may seem, if it doesn’t agree with your basic comfort level (your gut feeling), it isn’t suitable for you.  I think recent financial history has show this to be correct.   Much Success, Sanford Kahn,  Author of the...