August 11, 2009

Market Analysis & Outlook

Market Analysis

Everyone is yelling “the recession is over”.  The stock market has risen close to 50% since its march low.  Lets examine the forces that might influence future markets: Upside:  For individuals and fund managers who missed the recent rally.  There are intense pressure to get back into the market.  With talks of recovery everywhere, the baby boomers who lost 30-50% of their retirement portfolio are really anxious to get back into the market. Cost cutting + increasing productivity + sales […]

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August 11, 2009

Stock Pick: Washington Real Estate Investment Trust (WRE)

Stock Picks

WRE is a REIT that owns properties in the Washington DC area.  It is currently paying 6.5% dividends.   The story supporting this pick is simple:  There is no end to the ever-expanding government.  The trend of expanding government can be found in many places in history.   According to Milton Friedman, human history is dominated with big governments and concentration of power.  Civil liberty, freedom, and small government are actually exceptions in human history, which over-time loses to expanding government. Since […]

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June 12, 2009

A case for buying a house – with mortgage

Finance/Investment,Strategy

Buy a house on mortgage.  This is the only way you can load up a lot of debt.   We are marching closer to the inflection point beyond which deflation turns into inflation.  Interest rates are still low – although they are feeling the pressure to go up.  By loading up on debt, you are taking advantage of the coming high inflation, which would wipe out the your debt. Of course, heed your cash flow, you don’t want to be forced […]

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June 12, 2009

Wrong economics teachings

Finance/Investment,The World

The mainstream of economic teachings in highschools and universities is Keynesian economics.  Unfortunately, the Keynesian school of economics has gotten everything wrong and has driven our economy towards total collapse.   When a economic bubble burst, the excesses from the boom period must be allowed to be liquidated so the profitable and efficient businesses can absorb the resources tied up by unprofitable and inefficient businesses. Government bailouts, stimulus spending, injection to money supply would only increase the inefficiencies in the […]

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April 29, 2009

Stock Pick: PetroChina Company Limited (PTR)

Stock Picks

This ADR is paying 5% dividend.   This is an Oil and China play.  Currently the stock is at 2005 price levels.  Since I believe that oil price has bottomed out and China would be the first to recover from the recession, this is a great stock for me.  In addition, being and ADR, this stock pays dividend in Chinese RMB, which is a great hedge against the U.S. inflation and dollar devaluation.

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