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Category: Money Morning

Buy Into the Only Real Economy Left in the World – Martin Hutchinson – Money Morning

With most of the world’s major economies running the printing presses to the point where it’s becoming absurd, there’s one country out there that is in the catbird seat when it comes to a strong, stable economy, growing export markets and strong stable companies.

And it’s only going to get better.

Yes, there’s a world of opportunity out there, but for all the good there are some serious risks in the usual investing suspects:

The U.S. stock market is busting out to new highs, but the U.S. economy remains below par and the federal budget deficit remains at staggeringly high levels.

In Japan, the government is doubling down on U.S. policies, with a budget deficit and monetary “stimulus” twice the size of the U.S. figures.

Britain and the EU are locked in recession, with “austerity” apparently not working and close to being abandoned, while monetary policy becomes looser and looser, with interest rates well below inflation.

The opportunity?

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Symptoms Don’t Lie – Peter Schiff- Money Morning

A good doctor will not simply make a diagnosis based on measurements. The symptoms and complaints expressed by the patient are at least as important in making a determination as the data provided by diagnostic tools.

When the data says one thing and the symptoms continuously say another, it makes sense to question the reliability of the instruments.

This would be particularly true if the instruments are furnished by a party with a stake in a favorable diagnosis, say an insurance company on the hook for treatment costs.

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Warning: How the Bond Bubble Will Secretly Sabotage Your Retirement – Money Morning

A tool intended to make retirement investing easier may result in many Americans taking an unwitting hit to their portfolios when the bond bubble finally pops.

We’re talking about target-date funds, designed to be “set it and forget it”-style retirement vehicles for people who don’t want to bother with actively managing a portfolio.

Such funds usually include a combination of stocks and bonds, with the ratio dependent upon the investor’s retirement date.

When retirement is 25 years or more in the future, target-date funds typically hold about 90% stocks and only 10% bonds. But as time goes on, target-date funds shift the balance more in favor of bonds, with the intent of reducing exposure to risk and volatility.

By the time retirement is 15 years away, the balance is 75% stocks and 25% bonds. And when that nears to just five years away, bonds generally rise to about 40% of the portfolio.

So as we edge closer and closer to higher interest rates and the negative impact that will have on bonds – the dreaded bond bubble – many workers approaching retirement are slowly adding more and more exposure to it.

What’s more, many future retirees may not even know it.

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15 Obamacare Facts the President Doesn’t Want You to Know- Money Morning

From the first rumblings of a new healthcare law, critics have preached that the real Obamacare facts are far worse than the promises.

The real Obamacare facts include higher healthcare costs, diminished treatment quality, hidden taxes and an inflated deficit.  

“Obamacare was a political nightmare for Democrats in the 2010 election. In 2014, it’s shaping up to be a political tsunami,” Brad Dayspring, a communications strategist for the National Republican Senatorial Committee wrote in a recent email to supporters.

Indeed, President Obama’s own party is even having second thoughts.

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Natural Gas Companies Attempt to Make Fracking Safer – Money Morning

Hydraulic fracturing, or fracking, is the most important energy industry development in the past few decades, unlocking value for U.S. natural gas companies.

Its extensive use in the United States is completely reshaping the world energy scene.

But there is one question that lingers over the U.S. energy industry: Is fracking safe?

One of those saying fracking is 100% safe is sometimes controversial oil billionaire T. Boone Pickens.

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