Invest NOW In the World’s Next Big Shortage

I don’t give much thought to the amount of water I use in a day. From keeping the water running while cleaning the dishes to running the sprinklers so my lawn stays nice and green, it’s all the same to me. Most of us in this country take water for granted. But this will soon change, maybe not so drastically here in the US, but other parts of the world are going to find that water really is the world’s […]

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GOP rep wants to kill the ‘death tax’

1. Finra warns brokers that complicated investments may be risky for them, too The Financial Industry Regulatory Authority Inc. is putting brokers on notice that when it comes to complicated investment products extra care is needed. In a regulatory notice, Finra outlined characteristics of what it calls “complex products,” which could include structured notes, inverse or leveraged exchange-traded funds, hedge funds and securitized products such as asset-backed securities. Firms should have formal written procedures covering everything from the initial due […]

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In Honor of the 70th Anniversary of the Munich Students Movement – ‘The White Rose’

“Many people think of our times as being the last before the end of the world. The evidence of horror all around us makes this seem possible. But isn’t that an idea of only minor importance? Doesn’t every human being, no matter which era he lives in, always have to reckon with being accountable to God at any moment? Can I know whether I’ll be alive tomorrow morning? A bomb could destroy all of us tonight. And then my guilt […]

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Polysilicon Prices in 2012: The Tipping Point For Solar

Solar energy detractors point to the fact that it can’t compete without “huge” government subsidies. And up until now, I couldn’t argue to the contrary. But very soon, those detractors will likely be eating their words. I’ve said it many times in the past: Technology marches on, and the cost of manufacturing will come down. Well the cost of manufacturing solar isn’t just coming down; it’s dropping through the floor. By the end of this year, solar will be so […]

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More Evidence of the Power of Contrarian Investing

It seems that the only thing traders and investors on TV want to do is try to handicap when a bunch of government officials and bureaucrats in Europe will finally make up their minds and solve the crisis still gripping the region. But while that may be a fun mental exercise, I prefer to use my time looking for good investments to buy. Because when you find a good investment at a compelling valuation, the implications from Europe or any […]

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Now is the time for this advanced (but easy to use) strategy!

Writing covered calls is a strategy I’ve discussed here before, but I wanted you to know that I am now getting ready to actually start using it for my own dad’s income portfolio. Why now? Because, in its essence, covered call writing is a moderately bullish strategy. And in the case of an income portfolio, I actually think it works best if the market remains relatively flat or even pulls back a bit in the short-term. So, yes, this means […]

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Are some companies just naturally more profitable than others?

There are 6 large railways in North America (7 if you count Kansas City Southern as well). Canadian Pacific (CP) is the smallest by market cap and most inefficient among them (see my 2008 post on CP’s ranking among the Class 1 Railroads). Last year, hedge fund Pershing Square Capital Management bought enough shares to become CP’s largest shareholder and demanded immediate changes to make CP run more efficiently and more profitable. There is one problem. Here is CP’s railway […]

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That Old 1978-82 Analog Again

A post on Ritholtz’s Big Picture blog reflected a conclusion I recently reluctantly needed to begin facing.  Regular readers know that for over two years I have been tracking the path of the S&P 500 Index in what I call “Reversion to the Mean” (last mentioned here on November 4).  Briefly, the hypothesis was that the S&P has been growing since 1938 at an average annual rate of 7.5% and that it’s volatility around that growth rate was contained in […]

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Focus on few basic setups

Focus on few setups (one or two) and get in to depth of it. You must expand your knowledge of setups but it does not mean you should trade all the setups. Most setups are rehash of same basic ideas like range breakouts, pullbacks, pivots, exhaustion. Same soda , different color, flavor and bottle. The real key is to understand the essence of a setup and then decide whether your current setup achieves the same thing.You can pick up few […]

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Let Go of the Spatula: Reconsidering Wedding Registries

My brother, my best friend, and my girlfriend’s sister are all getting married in the upcoming year, so I’ve heard a lot about wedding registries lately, and there seem to be many pros and cons. Personally, one of my least favorite things in life is going to Crate and Barrel, walking around with my scanner gun, and seeing that the only things that fit into my price range are wooden spatulas and the saucers to espresso cups (the cups already […]

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