The adage is to buy low and sell high. Americans, and world denizens, have been buying high from the stock market for more than a decade. The stock market was driven up to historic highs, and generally peaked at a Dow Jones 14,903 on October 12, 2007, a year ago today (Sunday).
Over the past year the price of gold has hit historic highs, although it is down to $849 per ounce today. Investors have been selling diminishing stock values for increasing gold values.
Tags: Dow Jones, economy, gold, stock, stock market, Wall Street
The government has now approved a record $700 billion plan to try to stabilize US–and world–financial markets. The plan is not a total bailout as the media describes it; it is more of a government purchase of the stock of failing companies. The government is expecting a return on it’s investment, and, who knows, perhaps Uncle Sam will actually make money on this “deal.”
Of course, the government is doing the negotiating, so instead of using leverage to buy anything worthwhile, such as the senior preferred stock that Warren Buffet gets when he takes over a company (senior preferred stock gets paid first when dividends are awarded) the feds are getting non-voting stock. There is also no mandate that the stock be bought back, which means that a portion of the $700 billion will go to lobbyists maneuvering to have the stock perpetually “floating” so that it’s never ...Continue Reading
Tags: economy, England, Europe, senate, stock market, taxes, Warren Buffet
