Virtually every important economic indicator is headed south with no abatement in sight. In response, President Obama and the Democratic controlled Congress is proposing the largest economic stimulus package in history and my guess is that there will be additional stimulus packages to follow. The stimulus package passed by the house two weeks ago received no Republican […]
Preparing for the Coming Chaos- Part I
Best Strategy for Your 401K
The stock market and the economy appear to be vying for first place in the contest for best swan dive in modern history. So far, it appears to be a tie. As a result, shell shocked workers find themselves worried about their jobs as well as paralyzed about what to do with their 401k retirement plan. Seeing your […]
2009 Outlook for the Economy and Markets- Part II
In last week’s column, I discussed all the reasons that 2009 should see a significant economic and stock market recovery. I also noted that there were a number of scenarios that could derail a recovery and push us deeper into recession. Unfavorable scenarios Perhaps the greatest risk is that the credit crunch worsens as banks […]
2009 Outlook for the Economy and Markets- Part I
The year 2008 was the worst year for the stock market since the Great Depression. In the United States, the stock market plunged nearly 40% while international stocks suffered an even worse fate. The primary catalyst was the subprime debacle which began to show itself in mid-2007, compounded by mismanagement of some of America’s once most revered […]
Plan for Success in 2009
Whew! 2008 is finally behind us and what a year it was! The stock market fell 40%; millions of people lost their jobs; and some of our top executives became the ‘beggars of Wall Street’. So what is 2009 likely to bring us? While it’s impossible to know, my best guess is that things will get worse during the […]
Ponzi Scheme Roulette
In a world where investor confidence has been shattered by massive mismanagement by top executives in the banking, insurance, mortgage lending, stock brokerage and auto industry fields, now comes the greatest Ponzi scheme in history. Bernard Madoff has reportedly admitted and is accused of bilking experienced investors worldwide out of an estimated $50 billion. There are many […]
Fed Cuts Interest Rate to 0%
Ben Bernanke, as Chairman of the Federal Reserve, is continuing his efforts to stop our economy from free-falling. This past Tuesday, in yet one more unprecedented move, the Federal Reserve cut the Federal Funds Rate from 1% to a ‘target’ rate of 0% to 0.25%, the lowest rate in history. The Fed Funds Rate is a […]
Still Time for Tax Planning
As 2008 comes to a close, everyone is focused on our faltering economy and declining stock market. However, it would be a mistake to miss the opportunity of doing tax planning before the end of the year. Here are my top strategies for you to consider: Convert to a Roth IRA. One benefit of a huge stock […]
The Art of Giving Without Breaking Your Budget
This year more than ever, you will want to keep tight control on your holiday spending. With the economy in the tank and unemployment rising, your best defense is well, a good defense. Follow these four steps to stay on budget and out of debt: Step 1. Determine the total amount of money you can afford to […]
Time to Sell Your Stocks?
Many retirees are worried about the survivability of their retirement investments in the face of breathtaking stock market losses. As panic has begun to set in, millions of once-sane investors have thrown in the towel. Over the next several months, those who have cashed out will realize that the interest being paid on the money market account […]