Whither Housing?

As we saw with our last post, residential construction is far and away the biggest economic problem for the US right now.  So it only stands to reason that the economy isn’t likely to get back to full strength until…

Why aren’t there more Jobs?

This is a good look at some major components of the US economy over the last 16 years.  There are a few insights that are particularly meaningful in understanding why overall job growth has continued to be disappointing. Two of…

The Confidence that comes from Experience

Recently we’ve been asked how we can be confident about investing when the world seems so uncertain.  It’s because we’ve been through rough times before, which helps us understand that short term losses are not an indication of long term…

Risk Capacity: What it is and Why we use it

The primary purpose of measuring risk capacity and applying it to an investment strategy is to prevent being forced to sell low. In other words, we want to prevent short term risk from harming your long term security. In operation, the…

Is It The End of the World?

Probably not, even though it may feel like it. What’s Going On The financial markets have been hit with a steady barrage of negatives. Europe is still struggling to address the problems inherent in the Euro — namely that they…

Our Healthcare Costs vs. The Rest of the World

As most people know, healthcare costs have been rising much faster than other areas of our economy for decades.  The chart below demonstrates what will happen to federal spending levels if healthcare costs continue to rise too quickly.  Despite what…

The Impact of Taxation on Economic Growth

As mentioned in our previous blog post about the debt ceiling, we said that our long term fiscal problem is heavily influenced by two issues- taxation and health care costs. There is a school of economic theory that says that…

Where do my Tax Dollars Go?

We all hear about how the US is going broke. Depending on the viewpoint or agenda of the source of what we hear, read or see, the cause of the federal government’s financial problems varies. Unfortunately, there is almost always…

Middle East Turmoil and Your Portfolio

An easily forgotten truth of investing is when prices are high, skies are sunny and when prices are low it’s stormy.  In other words, successful long term investing involves turning cautious when things look good and aggressive when things look…