How to Protect Yourself From Rising Fuel Costs
When countries run persistently large budget deficits, politicians will tend take the path of
least resistance and inflate away the amassed debt by depreciating their currency.
Our
politicians in the U.
S.
are no different than the ones in other semi-developed countries.
Oil
and other...
More
How to Protect Yourself From Rising Fuel Costs When countries run persistently large budget deficits, politicians will tend take the path of least resistance and inflate away the amassed debt by depreciating their currency. Our politicians in the U. S. are no different than the ones in other semi-developed countries. Oil and other basic commodities are priced in $$. As the dollar depreciates, the $ price of these commodities will rise. You are now seeing this in the price of oil and gasoline and other commodities. Therefore, what is a simple strategy to protect yourself against rising fuel costs? Why not buy shares in a very large integrated oil company that pays a good dividend and sell a call option against these shares to generate extra income. A call option gives someone the right (not the obligation) to buy your shares from you at a certain price within a certain time limit. For example, let’s say you buy 100 shares of Exxon Mobile Corp. (symbol XOM) at today’s price (Apr
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From kahn
The 7 Basic Precepts That Govern Life & Events
The Seven Precepts were developed to give people a different and realistic view on life and
events—devoid of popular myths and seductive illusions.
They are based in part on my 30
years of experience as an economic/business speaker and author.
The precepts are based on
the classical...
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The 7 Basic Precepts That Govern Life & Events The Seven Precepts were developed to give people a different and realistic view on life and events—devoid of popular myths and seductive illusions. They are based in part on my 30 years of experience as an economic/business speaker and author. The precepts are based on the classical definition of economics—the study of human behavior in its historical setting. In other words, economics is psychology. These precepts are unique in that they are the result of combining the laws of economics, sociology, and physics into a set of seven basic statements to be used as a guidepost, to make your life more enjoyable and understandable. They are not religious dogma, but instead are a reference for confronting and resolving many of life’s conflicts. Precept #1 The eternal truth of the universe is that all actions provoke reactions. In human terms these reactions or consequences may be positive or negative. Someone or something has to pay a pri
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From kahn
The Gods and Mortal Overconfidence
In our thought processes let us venture outside-the-box.
Of course, one could make the
valid point that most of my postings are a little outside the proverbial box.
There is an old Greek saying that rings so true today.
It is—for whom the Gods will
destroy they first make overconfident.
There is...
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The Gods and Mortal Overconfidence In our thought processes let us venture outside-the-box. Of course, one could make the valid point that most of my postings are a little outside the proverbial box. There is an old Greek saying that rings so true today. It is—for whom the Gods will destroy they first make overconfident. There is a subtle difference between being confident and being overconfident. When you are confident in designing your plans or strategies, you have a belief in yourself and your abilities. But, as a mortal, you recognize that there is a possibility of failure—even if no fault of your own. You have done your homework and feel strongly that the odds of success are in your favor. This is called a calculated risk and we all take them. Recognizing that events can move against you, you have taken this into account to mitigate any negative developments. Now let’s move on to overconfidence. When one is overconfident, he or she feels that their plans or strategies w
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From kahn
Microsoft Word
Pub. on Apr. 5th 2010
Pages: 1
Views: 5
Downloads: 0
The Long Kiss Goodbye
The long kiss goodbye refers to the American middle class and their road to extinction if
the current form of national health care (Obama Care) passes.
As usual, Congress has
vastly underestimated the costs of this plan and has overestimated the tax revenues to pay
for it.
As an example, in 1965 the...
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The Long Kiss Goodbye The long kiss goodbye refers to the American middle class and their road to extinction if the current form of national health care (Obama Care) passes. As usual, Congress has vastly underestimated the costs of this plan and has overestimated the tax revenues to pay for it. As an example, in 1965 the Congressional Budget Office estimated the cost of Medicare 25 years latter in 1990. Their estimated cost was $13 billion. The actual cost was $109 billion. Congress will be forced to seek additional revenues. This will fall hard on the American middle class because that is where the money is. Contrary to popular belief, there are not that many wealthy people to tax. (Even less now after this deep recession. ) One of the taxes to come will be a value added tax (VAT), but others will follow. The power to tax is the power to destroy. It is the American middle class that will take the brunt of it. Economic growth and job opportunities will suffer. Be Solvent an
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From kahn
Microsoft Word
Pub. on Apr. 5th 2010
Pages: 1
Views: 0
Downloads: 0
Analyzing the Financial Market: The Rule
of 20
In our own unique way, we are all investors.
We are definitely all investors in time, but the
majority American households also have investments in financial assets, namely stocks.
These equity investments can be held in a 401k plan, mutual funds, or an IRA.
This
doesn’t count the...
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Analyzing the Financial Market: The Rule of 20 In our own unique way, we are all investors. We are definitely all investors in time, but the majority American households also have investments in financial assets, namely stocks. These equity investments can be held in a 401k plan, mutual funds, or an IRA. This doesn’t count the good percentage of people that have a personal account they actively manage or trade. Divining the direction of the stock market can be as confusing as being a termite in a yoyo. So what would be a good simple gauge we could use to determine if the equity markets are overvalued or undervalued? Price to earning ratio is one determinant, but it has its limitations. Enter the Rule of 20—a simple formula that has been around for many years but hardly ever used. The Rule of 20 is not a magic formula, but it is useful in evaluating if stock prices are over or undervalued. . What it says is this— from l961 to about l994 the rate of consumer inflation when added
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From kahn
How to Boost Your Yield on U.
S.
Treasury Securities
Instead of buying treasury securities directly from the Treasury or through a broker, buy
an exchange traded fund (ETF) called 20+ Year Treasury Bond ETF (symbol TLT).
It
trades exactly like a stock and has at least 95% of its assets in U.
S.
government
obligations.
The way to...
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How to Boost Your Yield on U. S. Treasury Securities Instead of buying treasury securities directly from the Treasury or through a broker, buy an exchange traded fund (ETF) called 20+ Year Treasury Bond ETF (symbol TLT). It trades exactly like a stock and has at least 95% of its assets in U. S. government obligations. The way to boost your return is by selling a call option against your position. The buyer of the call option (each call option represents 100 shares) has the right (not the obligation) to purchase your 100 shares of TLT at a certain price (strike price) within a certain time limit. For that right the call buyer will pay you cash (the premium) directly into your account. This is yours to keep no matter what. Let’s go through an example. Recently, TLT closed at $89. 90 per share or $8,990 per 100 shares. You can sell a call option for someone to buy your 100 shares between now and the third Friday in March (approx. 3 months) at $92. 00 per share. For that right
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From kahn
The Simple & Basic Law of Human Behavior
Humans are complex creatures.
Of this, there is very little argument about.
Unfortunately,
complexity in all its different shades is difficult to dissect and understand.
This same holds
true in understanding basic human behavior.
Therefore, to understand what motivates human behavior you...
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The Simple & Basic Law of Human Behavior Humans are complex creatures. Of this, there is very little argument about. Unfortunately, complexity in all its different shades is difficult to dissect and understand. This same holds true in understanding basic human behavior. Therefore, to understand what motivates human behavior you must reduce this behavior to a simple and understandable basic rule. The simple law that explains human behavior is— people act and do what they perceive to be in their own best interests. The key word is “perception”. All movement in the course of life is turbulent and, therefore, unpredictable. The same holds true to one’s perception. How you perceive events and life at age 25 is probably much different than how you will perceive it at age 50. In that 25 year interval, the rigors of life have changed your attitudes and hence your perception (whether positive or negative). As your perception changes, so does your attitude and your actions. Sanford K
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From kahn
We are all sinners – at least in the business sense.
And, it is hard not to be a business
sinner today.
In our current pell-mell state of rushing about putting out current “business
fires” it would be beyond the capacity of mere mortals not to make one or more of the socalled business sins.
Knowledge of these seven great...
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We are all sinners – at least in the business sense. And, it is hard not to be a business sinner today. In our current pell-mell state of rushing about putting out current “business fires” it would be beyond the capacity of mere mortals not to make one or more of the socalled business sins. Knowledge of these seven great business sins will not make you perfect, but can allow you to be a better business manager. 1. WORSHIPPING HIGH PROFIT MARGINS If you maximize your profit margins, you’ll also maximize your competition. High margins mean your competition will lower their costs just to beat you out. Rather than have the highest profit margin, go after market share instead. 2. MISPRICING A PRODUCT OR SERVICE ON WHAT “THE MARKET WILL BEAR. ” Maximizing the price of a product or service based on what people will pay will not increase your market share. Find your niche, stay in it, and price your product or service to bring in more clients and customers. 3. USING COST-DRIVEN VS.
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From kahn
Is it TRUE-We live and work in an economy that is changing very rapidly?
One of the more popular and often repeated business and societal themes is that we live
and work in an economy that is changing quickly.
This is especially true with individuals
who make their living selling programs or seminars dealing and adjusting to rapid...
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Is it TRUE-We live and work in an economy that is changing very rapidly? One of the more popular and often repeated business and societal themes is that we live and work in an economy that is changing quickly. This is especially true with individuals who make their living selling programs or seminars dealing and adjusting to rapid and turbulent change. The myth is partially true. You must ask yourself the question of what is changing rapidly—is it business trends or events? As Aesop illustrated in one his old and respected fables, every truth has two sides. What you see on television, hear on the radio, and read in the papers are events, and these change quickly. Events have always changed quickly no matter what time period you examine. You might say by definition events change quickly. On the other hand, economic trends change slowly but take on a life of their own. They move to an extreme and then reverse themselves. No trend lasts forever, but they can last for sometime. A
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From kahn
Profiting From the Business Cycle
Why is there a business cycle? Someone once noted that people could tolerate any
condition except the possibility of one.
This one condition is prolong periods of
prosperity.
Incredible as it seems, this observation contains more than just a
kernel of truth, and helps to explain where we are in our...
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Profiting From the Business Cycle Why is there a business cycle? Someone once noted that people could tolerate any condition except the possibility of one. This one condition is prolong periods of prosperity. Incredible as it seems, this observation contains more than just a kernel of truth, and helps to explain where we are in our current business cycle. When the economy starts to recover from a stiff downturn, people are understandably doubtful about the tenacity of the young expansion. They hold back on their discretionary spending and their use of debt. As the upswing continues to gather force, people tend to become less risk averse. You might say that the greed factor becomes more prevalent. As the upturn ages, people become more confident and think that the expansion will last indefinitely. (This has a similar ring to peoples’ recent attitudes towards real estate) Business people take on more debt to leverage their profit margins. The consumer will also be increasing the
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From kahn
Long Beach, CA, United States
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