Investing Inertia Won’t Keep Your Cash Safe

Investing Inertia Won’t Keep Your Cash Safe By Dennis Miller A dear friend asked for help—the sort of help you might need too. She’s retired, lives alone, and has a modest nest egg. But the thought of losing any of her life savings terrifies her. Let’s call my friend “Sally.” Sally doesn’t trust stockbrokers or any commission-based investment advisors, and she confided that all of her money is in a cash account, earning 0.01% interest. Sally understands that at that rate, she’ll likely outlive her nest egg. She knows she needs to do something but is understandably afraid and feeling vulnerable. Sally played my own warnings right back to me… The stock market is near an all-time high. The government, not solid business fundamentals, is propping up the stock market. Junk bonds have a higher rate of default than top-quality bonds and are currently paying some of the lowest interest rates in several decades. Preserving capital and earning decent yields are both essential to making a lifetime portfolio last. CDs are risky because they tie up your money and might lose against inflation. These are real fears. Sally understands the risks of investing; however, she underestimates consequence of doing nothing. Several Money Forever subscribers have expressed similar concerns. So, to answer Sally and company we’re sharing a conversation between Money Forever chief analyst Andrey Dashkov, Casey Research senior analyst Chris Wood, and me. Dennis Miller: Andrey, I’ll start with you because I know you’re something of a financial advisor to … Continue reading

The 10th Man: I Heart Capitalism

The 10th Man: I Heart Capitalism By Jared Dillian   Let me begin by saying that if you aren’t on Twitter, you’re making a huge mistake. I was encouraged to get on Twitter years ago by a tech-savvy friend. There is a learning curve. It’s not the easiest thing to get the hang of. Used correctly, it can make you smarter. If you could take a smart pill to make you smarter, you would take it, right? Get on Twitter. So I saw an interesting table on Twitter—someone had taken a photo of a table out of the print version of Barron’s magazine and tweeted it to their followers. I am reproducing it here: Nasdaq, Then And Now Below are the top 10 stocks in the Nasdaq Composite Index. The first thing you notice is that there’s been a huge turnover. Sun Microsystems disappeared, the box business was so bad Dell took itself private, and WorldCom… well, we all know what happened to it. But the even more obvious thing is the valuations. If I’d told you 15 years ago that big tech companies like Cisco and Intel would end up with valuations in the teens, you would have called me crazy. And even if you had believed me, you probably would have thought that the P would go down, instead of the E going up. I mean, think about this. The biggest company in the world—Apple—makes so much money that the stock is almost cheap. Some very smart people … Continue reading

Outside the Box: Shovelin’ Schmitt Against the Tide

Outside the Box: Shovelin’ Schmitt Against the Tide By John Mauldin   There is an obsession in the marketplace over the date when the Fed will once again begin to raise rates. As if another 25 basis points is going to change the economics on tens of trillions of dollars of investments. But as we reflect on the issue more deeply, it becomes obvious that a minor bump in the fed funds rate will indeed change a great deal of economics all over the world. No, it won’t do much to the cap rate on your latest real estate purchase, but it is likely to greatly affect the pricing of the currency and commodity markets. And those markets will affect corporate profits, which will affect the stock market. It’s all connected. And what if the Fed has lost control? What if they are in a no-win situation where raising rates will cause reactions they don’t want, but not raising rates will result in equally unpleasant reactions? A big part of the problem lies in what we analysts call divergent and convergent monetary policies. With Japan mounting an unprecedented quantitative easing attack on currencies everywhere and Europe getting ready to join in, with smaller nations all over the world lowering their interest rates, if the US were to raise rates, that move would strengthen the dollar even more. But that would mean even more deflation imported into the US. Today we find that the headline CPI was -0.7% for January, coming … Continue reading

Foreign Real Estate Is the New Swiss Bank Account

Foreign Real Estate Is the New Swiss Bank Account By Nick Giambruno Financial privacy is essentially dead. I think it’s only prudent to assume that sooner or later all the details of your financial life will come to rest in a government computer—if they haven’t done so already—and to plan accordingly. We live in a world where pretty much every penny you earn, save, and spend is stored in a permanent record somewhere and can be retrieved for scrutiny one day if needed. It’s not a comfortable or happy thing. But no matter how unpleasant it is, I believe it’s a reality we have to face. Knowing that you are financially naked and exposed to an insolvent government hungry for revenue might make you feel like you just ate rat poison for lunch. That said, don’t be tempted to try to illegally hide your income and skirt reporting requirements. It’s a fool’s errand. The draconian penalties make a cost/benefit analysis easy… don’t even think about it. An Inescapable Global Dragnet FATCA is at the vanguard of the global trend for the automatic reciprocal exchange of financial information between governments. In case you don’t know, FATCA, the Foreign Account Tax Compliance Act, is the wildly unpopular law that forces every financial institution in the world to report information about their American clients to the US government, which imposes huge costs on those financial institutions. In effect, FATCA causes every foreign bank to become unpaid agents of the IRS. The US is … Continue reading

Transgenomic Prices Offering of Stock and Warrants, Anticipates $6.2M in ... - GenomeWeb

Transgenomic Prices Offering of Stock and Warrants, Anticipates $6.2M in …GenomeWebThe firm is offering 3,573,899 shares of its common stock, as well as corresponding warrants to purchase 714,780 shares of its stock. The stocks and warrants will be sold in combination with one warrant to purchase .20 of a share of stock for each …Transgenomic Announces Pricing of Public Offering of Common StockDigital JournalTransgenomic Announces Commencement of Public Offering of Common StockPharmiWeb.com (press release) all 21 news articles …read more … Continue reading

INSERTING and REPLACING Transgenomic Announces Pricing of Public ... - PharmiWeb.com (press release)

INSERTING and REPLACING Transgenomic Announces Pricing of Public …PharmiWeb.com (press release)Insert after first paragraph first sentence: The common stock and corresponding warrants will be sold in combination with one warrant to purchase 0.20 of a share of common stock for each share of common stock sold. The combined purchase price for each …Transgenomic Announces Commencement of Public Offering of Common StockRock Hill Herald (press release) all 19 news articles …read more … Continue reading

Transgenomic Announces Pricing of Public Offering of Common Stock - Digital Journal

Transgenomic Announces Pricing of Public Offering of Common StockDigital JournalOMAHA, Neb.–(Business Wire)–Insert after first paragraph, first sentence: The common stock and corresponding warrants will be sold in combination, with one warrant to purchase 0.20 of a share of common stock for each share of common stock sold.Transgenomic Announces Commencement of Public Offering of Common StockMarketWatch all 14 news articles …read more … Continue reading

INSERTING and REPLACING Transgenomic Announces Pricing of Public ... - Finances.com

INSERTING and REPLACING Transgenomic Announces Pricing of Public …Finances.comInsert after first paragraph, first sentence: The common stock and corresponding warrants will be sold in combination, with one warrant to purchase 0.20 of a share of common stock for each share of common stock sold. The combined purchase price for …Transgenomic Announces Commencement of Public Offering of Common StockPharmiWeb.com (press release) all 19 news articles …read more … Continue reading

INSERTING and REPLACING Transgenomic Announces Pricing of Public ... - Business Wire (press release)

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CVSL (CVSL) Prices 6.7M Common, Warrants Offering at $3/Unit - StreetInsider.com

CVSL (CVSL) Prices 6.7M Common, Warrants Offering at $3/UnitStreetInsider.comCVSL (AMEX: CVSL) announced the pricing of an underwritten public offering of 6,667,000 shares of common stock and warrants to purchase up to an aggregate of 6,667,000 shares of its common stock at a combined offering price of $3.00. The warrants will …CVSL Announces Pricing Of Public Offering Of $20000000 Of SecuritiesCNNMoney all 7 news articles …read more … Continue reading