Has the Dow Really Recovered?

On July 13, 2011, in his testimony before the House Financial Services Committee, Federal Reserve Chairman Ben Bernanke told Texas Congressman Ron Paul that he does not think gold is money, only an asset. Mr. Paul pressed further and asked, “Why, then, do central banks hold gold as reserves?” Mr. Bernanke, looking a bit like a grade […]

Read Full Post

State of the Life Insurance Industry: How Does it Affect You?

State of the Industry As a result of recent turmoil in the financial markets, life insurance companies are increasing rates for the cost of insurance to offset investment losses and low interest rates. In the past, life insurance companies were able to rely on high rates of investment returns, not just to bolster their profits, […]

Read Full Post

Life Insurance Rescue

The Problem If you purchased any form of cash value life insurance policy (universal life, variable life) years ago, your cash value may be running on empty, leaving your policy in danger of lapsing and you and your family without protection. Many people bought these policies based on projected cash value accumulations with much higher […]

Read Full Post

To Thine Own Self Be True (With Apologies to William)

In Shakespeare’s Hamlet, the character Polonius offers a final piece of advice to his son Laertes: “This above all: to thine own self be true.” While literary interpretations vary, part of the context did involve money, albeit in a different context than used here. All of the investment advice in the world may be meaningless if an […]

Read Full Post

Running To Just Keep Up Or Stuck on a Treadmill

As the fi rst decade of the 21st century concludes, many reflect on issues, events, progress, or the lack thereof. Rather than review the last year or the even the last decade, let’s take a look at the last 40, dialing back to 1970 places us strategically ahead of the 1971 action by President Nixon closing the gold […]

Read Full Post

The Era of Default

Historians love to identify time periods as “eras.” Think Renaissance, Agricultural and Industrial Eras. As they look back at the current period of the United States, they may well name it “the Era of Default.” Why, you ask? The emergence of the recession and the great credit unraveling of 2008 are revealing unsustainable propositions which now are being […]

Read Full Post

King Dollar or Court Jester?

With apologies to television pundits who sing the praises of the U.S. Dollar (USD) in any environment, a serious look at the Dollar as a currency is warranted. Investment strategy and performance needs to be measured not only in nominal currency terms, but in real purchasing power terms. After all, the goal is what your investments can buy, not […]

Read Full Post

Dow 15,000!!! So What, Who Cares, Big Deal

In Part 1 I illustrated that since 1999 the major indices have not been keeping pace with inflation as measured by the Consumer Price Index (CPI). A question arises as to whether the CPI adequately represents a true change in the cost of living. I think it appropriate to include in this analysis a figure that includes […]

Read Full Post