The Last, last post

Folks the cliff is coming, but this country will not go over it...But we know a few things. Taxes are going up, but not for just the rich. Oh sure it will be reported in such a manner, but the fact is many taxes will go up and they effect many people. Capital gains will go up along with a dividend tax. What does that mean? It means every time a stock owned produces dividends it will be taxed and there are millions of people holding such stocks.

As always we can argue the merits, but not here. I would suggest if you hold a high paying dividend stock, sell it! If you don't, stay away from them. Instead look at commodities as the prices are sure to stay high with the dollar low.

Also, keep watching CNBC, FOX Business, Bloomberg.com, Money. come etc. Read them, analyse them, but never, never take them for the gospel.

Good luck and happy investing.

Last Post

I am not sure how many folks read my blog, but I have enjoyed putting items together. The one challenge I had was trying to keep this a non-partisan site, but it wasn't easy. The fact is, being a good investor means analyzing politics, but at the same time staying neutral.  An investor is not deciding what policies are right or wrong, they only need to know what it means.

Hopefully, I have offered some ideas on how to do that.  We are certainly venturing into uncharted waters economically, the question is where is it leading?  Keep your eyes and ears open, soak up information and remember, make your money work for you.

Dean.

Close Our Eyes and Jump Right Over

The Fiscal Cliff is coming, the Fiscal cliff is coming...Hide the women, protect the kids, it is coming! Folks it is time to slow down, take a deep breath and look at an issue with logical for once...The fact is going over the cliff would force the government to make cuts and moves they would otherwise avoid.  As for the those screaming doom and gloom they all have their reasons. General Dynamics and their investors want to continue building tanks the army does not want or need.  Investors are fully engulfed in many projects financed by the government and of course there are thousands of lawyers and CPAs fearing a simple tax process.

But don't take my word for it..Read Mark Schmitz of Time...

Christmas Gift Ideas

The time is here, Christmas shopping and that means present hunting. Well, here's an idea; silver coins.  Okay, maybe they aren't a Xbox 360 or Ipad, but silver coins are a great way of investing in your kids' future.

Buying  a silver coin is simple, so long as that search is not for collectible coins. There a hundreds of dealer options, but one I have used numerous times is AMPEX, located in Oklahoma City.  APMEX deals in numerous types of coins, but I would suggest sticking to the American Silver Eagle.  The price of these coins are basically tied into the price of silver, offering a great way of obtaining physical silver. The Eagle is a pay for what you get type of coin, no guessing if it is rare or collectible.

Another option is the Silver Morgan coin, but venturing into this arena is a bit trickier, because the Morgan is a collectible. Circulated in the late 1800's, the Morgan is associated with the Wild West, making it a highly popular coin.

So, when Christmas shopping this season, think about silver coins and the investment opportunity they can provide.

Now What to Do?

The election is over and President Obama will be serving another four years, so now what? There are two different ways of approaching this situation. For a Republican it is a time of concern, but for an investor it means four more years of the same.

So what does that mean? For some it means very rough times. CNBC's Marc Faber is predicting a market meltdown. This is a plausible outcome as the economy is on shaky ground and it won't take much to tip it over. But dealing with what we do know is the administration will continue their policy of a weak dollar. The Fed Reserve and Obama will continue to print money and with that the value will stay weak. In other words, buy commodities, such as gold and silver. People will flee the dollar and move into precious metals as interest rates will also struggle.

Another area is green energy. Obama will continue to back the movement out of fossil fuels and into renewable sources. However, be very careful as with any new market there are going to lots and lots of losers.


We know what Obama has done, so focus in on that, but keep on eye on what he might do! 

Election Day

On July 2, 1776 a group of men convened in Philadelphia, Pennsylvania. When the meeting concluded a new nation was born, The United States of America.  Over the next 236 years this country has grown well beyond the original colonies, spanning from ocean to ocean.  During this time period we have had some dark hours. Slavery, segregation, the massacre of the Native Americans and the oppression of female voting rights are some examples. However, there were always voices demanding  these wrongs to be made right and eventually they were corrected.

Let's face it this is a great country, one unique in history were freedom has reigned and so many have basked in it. A pillar of this freedom has been voting and the ability of the people to shape  government through voting. Today we are given this opportunity one more time, don't miss it.  The power has and will rest in the hands of the people, make sure you use it.

On a personal note, my wife and I have had long discussion about this election. Not because of economic issues, tax issues, abortion or birth control. You see our son is joining the military in a few years and we both realized the person who wins tomorrow will decide when and where our son puts his life in danger. This has weighed on us both. Just something to think about.

Good day and happy voting...After that the investing begins again. 

Germans Want to See the Gold

This is an interesting turn of events and I for one like it. The German Federal Court has ruled their central bank must inspect their physical gold holdings in New York City. Why do I like this? Because by doing so, some of the aluminum hat wearing folks can be debucted...Of course they will still be out there, but this will add more evidence to their insanity.
Read the story on CNBChttp://www.cnbc.com/id/49540593

This is Why We Must Gain Knowledge

The numbers are in and as suspected, there was something wrong with the last unemployment numbers. California did not report their jobless claims and clearly this had an effect on the numbers. But, this is secondary.

The fact is can we trust any numbers? We have been trained to trust the government numbers, after all they were produced by independent agencies, free of bias. However, now it appears these numbers are biased leaving the investor wondering where to turn.

The answer is turn to everything. Sponge information from all resources, take in all reports and then decipher the information. Ignore the analysis, but build knowledge. Learn about the effects of inflation, deflation, higher and lower interest rates, monetary policies and housing market. Observe what is going around you. Are your neighbors and friends employed? Are businesses in your area hiring? How are things going at your place of employment. There are indicators all around us, clues as to how the economy is going. Learn to read them and drop the middle person, take away the bias opinions and trust yourself.

Unemployment Rate?

The most recent unemployment number came in as 7.8 percent and almost instantly many were yelling BS!
This is one of those moments where politics and economics are mixing and the end result is not good.

Take a look at Jack Welsh, one of the most successful CEO thinks about the number:

Visit NBCNews.com for breaking news, world news, and news about the economy

Jack Welch says it all...

 It is a scary day when the president is being given numbers and intelligence  to meet someone's agenda. It happened with the Iraq War and now appears to be happening with Libya and the unemployment rate...

Update...More questionable numbers coming from the federal government...Job Claims.

There is a danger of this blog sounding political, but the fact is economics and politics don't mix. Good investors stay away from politics. Sure they watch it, learn from it and are concerned by it, but to become a strong investor and make good financial decisions political neutrality is a must. 

Looking at the current world situation things are unsettled and getting worse. Spain and Greece continue to boil over. Their unemployment numbers are astronomical and debt suffocating.  Numerous bailouts have been tried and after a few months nothing changes. But these two nations are not alone. Nations around Europe are facing devastating economic issues.  Yet, nothing has changed and the same old worn out ideas are being recycled. The turmoil in Europe will continue to be a drag on our economy, along with our own issues, that is a fact. So what does this mean for the common investor?

Europe is a prime example of why political neutrality is so critical. Sure the ideas are failing, but don't get caught up in debating why, leave that to Rush Limbaugh, Sean Hannity and Rachel Maddow. Instead, do your homework, search out investing opportunities.  Remember, money will be going somewhere and if Europe is becoming a grave yard look for the new boom town (likely Asia). 

Political debate is fun, no doubt. But it is a waste of time and a waste of money. Stay above it, move with it and take advantage. 

It become official this past week, QE III is going to happen. For those of you wondering, QE III stands for quantitative easing. In other words, the federal government is going to increase spending in hopes of jump starting the stagnant economy. This marks the third time such an action has taken place.

So what exactly are they going to do? The answer is found in the bond world. No, not James Bond, but U.S. Treasury Bonds, the little pieces of paper the government sells to help raise money.  This time the government will crank up the magic money machine and print more green paper. With that paper they will buy up Treasuries or mortgages from private banks and in theory pump money into the system. Does it work? The answer might be in the second part of the name III.

This marks the third time QE has been tried and of course reviews vary, but it can be argued, if QE worked they would not have been a II and III.  There are a number of problems in the theory. First interest rates are so extremely low the risk to benefits for a lender is out of balance.  Why would a bank take a risk on a loan when the return is so low? The answer is most won't, they will just sit on the money or invest in other areas. Second as more money floods the system, the value of the dollar is at risk of dropping, in one word, inflation. That is a major problem.

Regardless of the debate QE III is coming and only time will tell what the outcome will be.

Morgan Silver Dollar and APMEX

Ready to invest in gold and silver? I have purchased many items over the years from APMEX. The customer service has been thumbs up and the product high grade. Even if you are just looking to make a few small investments, coins can be really great! I also like to use them as gifts and my kids really enjoy getting Morgan Dollars. The Morgan is a great piece of American history. Used in the Wild West, the Morgan is the coin you might see John Wayne tossing on the bar or Clint Eastwood laying down on the poker table! They really are a great investment and conversation piece.

Even for those not wishing to invest in commodities, the prices are still very important. I have put up a link for commodity prices. Take a look at corn, the price for this item is going to go up because of the drought in the Midwest. This means higher beef, pork and poultry prices are in the pipeline.

http://money.cnn.com/data/commodities/

Watch out world! The price of gold and almost all commodities shows little signs of letting up. The reason is simple, the world's finances are in a tumble and everyone is looking for something safe. That something is gold and silver, always has been and always will be. The reason being is they hold a true value, unlike paper money.

Keep investing in this safe place until the things settle down, but don't forget to take some profit....