I have some wild ideas now and then and I write about them every so often because they amuse me.
This latest one I hatched is about way to retire for people that have not been lucky enough to accumulate a large enough nest egg for an ideal retirement. Several assumptions are made with this idea and I realize this.
Last summer my wife and I went to Juneau, Alaska. We loved the scenery, the hiking and the food. Alaska has a social program that I believe is unique. In 1982 the state of Alaska began to pay a dividend to residents out of something called the Permanent Fund. You can
for details but the basics are the fund is funded with oil money which is then managed in the capital markets. The amount of the dividend can fluctuate. This year's dividend was payable in October and was $845 for qualified residents. The dividend has gone down for the la
The market knifed down through most of October. Then it snapped back quite aggressively. The move to the upside lost a little steam mid-day Thursday and the market lost yet more steam Friday.
It seemed like a lot of people came out of the woodwork calling for a rally in the last few days. Given the environment we have right now, a close to 40 point move (40 SPX points) so quickly calls for a little downside. Maybe the next 25 or 30 points will be lower. If that happens very quickly, we probably go higher after that. More often than not big, fast moves reverse themselves, at least a little.
I haven't weighed in yet on the excess profit tax idea for the energy companies being kicked around. I'm not sure how to define excess profit. Even if someone creates a definition, won't energy companies
report smaller profits? One good question about this is the subsidies granted to the energy sector.
Kiwi Cracking? at 2005-11-12 20:28:49
Sean Callow, currency analyst from Westpac Bank, was on Asia Squawk Box and he gave a very specific opinion on the New Zealand dollar.
The Kiwi has been strong relative to other currencies because its short term interest rates are higher than any non-emerging market country in the world. The so-called cash rate (fed funds equivalent) is at 7%.
Callow believes that the RBNZ will not raise rates at their next meeting in December. If he is correct the Kiwi could sell off which is one part of the call.
Another reason for Callow's Kiwi bearishness is that both RBNZ chief Alan Bollard and Finance Minister Michael Cullen have both been saying the Kiwi is overvalued and that it will fall.
I have written many times about my personal and client exposure to New Zealand through Telecom New Zealand (NZT). It is a slow growth high yielding stock that is a good proxy for a country that is at a different point in the economic c
More Currency at 2005-11-12 20:28:49
On my way down to Phoenix I heard Bob Pisani talk twice about the strong dollar. The logical question is does this mark a top, intermediate or otherwise?
Part of the attention is coming from Warren Buffet who is unwinding his bet against the dollar.
The dollar has had a very strong move. That the move is getting a lot of attention on CNBC now is interesting. The issues that confront the US point to a weaker dollar long term, from the category that's just how markets work. However this just creates an expectation. Expectations do not have to come to fruition but a continued rally in the dollar going into next year would have to overcome some very big headwinds. Possible, but unlikely.
