Get Your Financial House in Order…NOW!

Subsequent to the US Presidential election in early November 2016, I have become “uber cautious”. My rationale for becoming this way is that:

  • Corporate debt levels are growing exponentially despite sputtering profit growth.
  • High-yield debt with “thin compensation” relative to increasing risk of default.
  • Political turmoil in various parts of the world appears to be escalating.
  • Subprime auto-loan default rates in the US now match those seen just before the 2007-2009 recession.
  • The number of retail outlets expected to close in 2017 will exceed that of 2008.
  • Almost half of certain emerging-market debt (the sovereign and quasi-sovereign variety) is below investment grade.
  • Canadians’ household debt (watch videos) at elevated levels.
  • Consumer debt levels in the US rivals those just prior to the Financial Crisis in 2008.
  • The quality of the leadership in Washington (not just at the Presidential level but his entire entourage). I suspect countless Americans who voted Trump into office held out hope that his “business prowess” would improve their lot. Had they read The Art of the Deal, a biography about Trump, they would have realized his “business prowess” is highly suspect. In my opinion, this man has few morals, is unethical, and is essentially a con artist. I recommend you listen to this 9 minute interview with The Art of the Deal ‘s “ghostwriter”.

Continue reading “Get Your Financial House in Order…NOW!”

Achieve Financial Freedom – Start By Asking Why and not How

The other day a reader asked me for some ideas as to how I go about selecting companies in which to invest. He had read other blogs which make extensive use of technical indicators and oscillators (Williams%R, MACD, Bollinger Bands, Stochastic Oscillator, etc.) and relied to a great extent on charting tools (SharpCharts, Point & Figure Charts, Candle Glance Charts, etc.). While he recognized these tools might work well for some investors, he acknowledged that his personality was such that he did not want to perform an indordinate amount of technical anlysis. Continue reading “Achieve Financial Freedom – Start By Asking Why and not How”

You Want Financial Freedom? Rid Yourself of Debt.

I have previously written about my concerns re: consumer debt levels here and here. While I don’t like to harp on the negative, I can’t help but become increasingly concerned when I read that Deutsche Bank’s chief international economist who has been staunchly bullish on the economy for quite some time is now talking about the following two downside risks to the US outlook:

  • the US has already experienced a very long recovery
  • credit quality is deteriorating

Continue reading “You Want Financial Freedom? Rid Yourself of Debt.”