After analyzing the traffic for the Online Investing AI blog, I became curious about the most popular post of all time. It turns out to be Rich Dad’s Cashflow Game is Now Free!. This got me thinking: why is this post so popular? Of all the Rich Dad posts, why do people love this one?
Rich Dad’s Cashflow Game
Perhaps it is because of the high price of the board game. When I last checked it cost over $100, compared to perhaps $20 for most board games. Does the Rich Dad game cost more to produce? No, it costs more because it is worth more.
April 3, 2016
It seems that we are entering a decisive period for the stock market. The S&P 500 is right at the top of a channel between 2,100 and 1,920. Although I don’t like technical analysis, it is pretty clear that if it rises significantly about 2,100, then a new bull market will start. Conversely, if it drops below 1,920 a major market crash may follow.
S&P 500 10 Year Chart
Although anyone with limited knowledge of technical analysis would come to the same conclusion, I imagine 100,000,000 would-be retirees don’t look at this chart. And even if they did, they would not be able to see its importance.
With all the attention placed on Trump, Sanders and the other candidates, it amuses me how clueless the vast majority of Americans are. Most people are focused on the wrong thing. They focus on the inflammatory remarks made by Trump, on they believe in the panacea fantasy described by Clinton and Sanders.
Virtually no one is focussed on the real problem. The country is bankrupt. Does it really make sense for Clinton and Sanders to deliver on their promises if they will make the country’s finances even worse? Trump does not provide details or a plausible plan either, probably because he knows that if he did large numbers of people would not like it.
Chart courtesy of ShadowStats
Nobody talks about QE Infinity or the inflation that has been accelerating over the last decades. Nobody cares that the country is bankrupt or that the party is followed immediately by major financial upheaval. Read more…
When I wrote about the US Debt Bomb back in August 2009, it was only(!) about $12 trillion. Since then it has grown to $19 trillion. If it’s difficult to comprehend such a large figure, consider it breaks down to $159,000 per taxpayer!
US Debt Keeps Growing
Unfortunately, this is only a small part of the country’s unfunded liabilities. When you add Medicare and Social Security, the total is about $100 trillion. Many people believe that this is too much for the country to pay off, and that we will never be able to pay it.
How did this happen?
As I have mentioned before, most of the politicians that have run this country for the last 50+ years have not been fiscally responsible. They treat budget spending the same way a teenager uses a credit card. Am I saying that they are bad people?
No. I am just saying that they do not have the skills or inclination to fix the budget problem. They don’t know how to manage money or a business. Even if they did promise to fix the problem, they would never be voted into office. They would have to make massive cuts to Social Security, Medicare, military spending and every other area that people are not willing to cut. The people who depend on all this excessive spending would have to vote for the politician, and they would never do it.
Enter Donald Trump. Although there are many things that are not great about Trump’s proposals, I think that he has the potential to fix problems like this. He’s not a politician. He has so much money and power that he doesn’t have to play politics. And, his confrontational personality seems to be the incompatible with the political process of trading favors.
Although this may seem incredibly obvious, many people say that markets always go up. I remember during the real estate bubble that popped in 2008, agents were saying,
Real estate always goes up.
It’s pretty obvious now that is a lie. But it works for them. The clueless would-be investors that believed them bought up properties like there is no tomorrow. And for them, there wasn’t much of a tomorrow. Most of the properties went into foreclosure and were repurchased by more savvy investors.
Shanghai Composite Index 2011 – 2016
Recently I ordered from an up-and-coming online food delivery service. It was the first time using their service, and although doubtful about their value prop, I thought “Let’s see how it goes.”
Well, to put is nicely, the food sucked. It was cold and unappealing.
I contacted their customer service and expected a prompt refund and a note saying, “Sorry you didn’t like it. Please give us another chance.”
But no. They said, “No, you can’t have a refund.” So they would rather have my $26 than a happy customer.
A wise man once wrote:
Markets top slowly and bottom quickly.
When I read this and anlyzed some of the major market tops over the last 100 years, I was surprised by the accuracy of this statement. (One major exception was the 2000 Tech Bubble, which was quite different from other market dynamics.)
S&P 500 Jan 2011 – 2016
The theory behind this is that the “smart money” figures out that a market is topping long before the average Joe. I’m not sure if I agree with the theory, but it does seem to me that the “stupid money” gets out way too late, after the market has dropped significantly.
Since today is Jan. 1st, I started thinking about New Years Resolutions. And what better way to start the new year than by creating a blog post?
One thing that is funny about New Years Resolutions is that most people have them. And 99% of the time they have completely forgotten all about them by spring. This useless goal setting system is completely broken. Yes nearly all people use it. Then they lament that they “failed” in following through.
The #1 New Years Resolution is going to the gym. I wish I owned some gyms. Perhaps 95% to 98% of the members never go. And those that do go only use it a few times per month. Ever wonder my gym membership is so cheap? Because the cheaper it is the easier it is to lie to ourselves.
I don’t want to cancel it because I am going to try to start going.
I wonder why people think it is such a great idea to get drunk and party on New Years Eve. Why? What’s so great about it? It’s just another year that went by. Did you achieve your goals? Did you get rich? Did you even go to the gym? If I answered no to those questions, then I wouldn’t be partying. I would be pondering.
This is a guest post by Jenny Richards. Jenny has worked in the financial sector for 12 years. She is a certified CFA and currently earns a good income working for a business that deals in car title loans in San Jose California.
Every company, at one point or another, needs to employ someone with a financial background. Financial positions could vary in a company from accountant, finance administrators, advisors and planners, CFOs and others. The need for a position and the prestige within a company is usually dependent on the size of the company.
Financial jobs are usually dependent on market cycles. At the moment, small loans are in demand among many consumers as the market is still reeling from the effects of the financial crisis. As such, companies that offer car title loans are growing because they are dealing in the types of loans that consumers can afford. Such growth occasions an increase in financial jobs.
Below are tips that will help you grow your finance career: Read more…
One of the biggest hurdles that the individual investor faces in trying to create a nimble, smart portfolio is the competition.
Investment bankers, quants, mutual fund companies, and big Wall Street firms are employing Ph.D. researchers with degrees in everything from finance to physics to create model portfolios. They use the latest and most powerful technology to guide their buys and sells.
The little guy doesn’t have a chance.
That’s what I thought, until last week. George and I had a chance to see a demonstration of Chaikin Analytics, probably one of the most complete set of investment tools and stock market model-building technology that’s available for the money. Or at least I’ve ever seen.
The Chaikin Analytics Dashboard
How does Chaikin level the playing field?