muses of the moment

January 15, 2015

What has groovygirl been reading?

totallygroovygirlfriday has been super busy with real estate the last few years. Things are going well so far.

Groovygirl came across an interesting book by Tony Robbins. It’s called Money, you may have seen it. Tony has been making the rounds on TV/internet.

This is a heavy book, very dense (600 pages). It doesn’t focus on gold or silver. But gg likes it because it gives an overall education regarding investing , especially 401ks. (You know how gg feels about 401ks.) This goes beyond debt reduction and teaches you about investing and what to look out for.

If you are an advanced investor, don’t worry about it. But if you have a friend that is out of debt and looking for the next lessons to learn, suggest this book. Tony’s cheer-leading way of writing may help give a boost where you fail with a friend. Investing and markets can so confusing and depressing sometimes, that people just give up.

600 pages….skip around for the info you need, if you find that overwhelming.

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July 22, 2014

Inside Job

Filed under: 401K and IRAs, DOW and S&P500, Stock Market, The Banking Crisis — totallygroovygirlfriday @ 11:33 am

groovygirl thought this article from Pam Martens was very interesting.

Click here.

From the link above:

Starting with the week of May 26, 2014, the Financial Industry Regulatory Authority (FINRA) began releasing weekly dark pool trading data to the public. That sliver of sunlight shows that some of the corporations with the largest share buyback programs are also among the heaviest traded stocks within the dark pools.

With banking declining, banks must make money anyway that can. This “recession” is hard on everyone, only bankers don’t go to jail for illegal activity to support their families, in gg’s humble and completely uneducated opinion ūüôā

Take the case of Apple Computer. According to FINRA data, in the five weekly periods of May 26 through June 23, dark pools traded over 103.6 million shares of Apple stock. The heaviest week was the week of June 9, 2014 when 39.9 million shares traded in dark pools. Goldman Sachs was responsible for trading 2,444,350 shares of Apple that week in its dark pool, Sigma-X, and has been in the top tier of dark pools trading Apple stock in all subsequent weeks reported by FINRA.

So what happens when corporations need cash to meet operation costs? Will they all put their stock up for sale at the same time? And who is going to buy that stock? Goldman and sell to muppets? I think the muppets are either out of cash or pissed off or both.

This can not end well.

 

February 18, 2014

Art Cashin on King World News

Filed under: 401K and IRAs, Stock Market — totallygroovygirlfriday @ 5:55 am

Click here for a good interview with Art Cashin on King World News (about 16 min.)

January 18, 2014

John Williams with shadowstats.com

Summary of John Williams’ real stats:

– Inflation Picks Up as the Economy Slows Down
– December Annual Inflation: 1.5% (CPI-U), 1.5% (CPI-W), 9.1% (ShadowStats)
РReal Retail Sales Declined by 0.1% in Industry’s Flagship Month of December; Slowing Annual Growth Signaled Recession
– Real Weekly Earnings Declined in December

gg¬†says: quite¬†a disconnect between inflation formula of today and inflation formula of the pre-1980’s. If you don’t like the number, just change the formula! Did your wages and/or investments go up 9% after taxes?

January 11, 2014

Employment Participation

Filed under: 401K and IRAs, DOW and S&P500, Economic Crisis, Housing Market, The Financial Crisis, Unemployment — totallygroovygirlfriday @ 10:47 am

Click here for a chart from zerohedge about the low employment participation rate. This chart has economic issues influencing it, but also demographic issues (baby boomers retire). And technology issues (improved productivity requiring fewer workers). And education issues (employment opportunities shift from industrial to informational age, but education is still in industrial age). groovygirl could go on. Just realize it is not just the economic depression that is feeding this chart, it has other influences. And because it has other influences, it will not be fixed by an improving economy. This is a paradigm shift.

Regardless of the cause: unemployed people whether they are on a fixed income in retirement or just have no or low paying jobs, they do not pay taxes, they do not buy things, they do not invest in large purchases (like houses), and they sell their stocks to live. They spend whatever money they have an essential living expenses. And if they are older, they spend money on healthcare. This is a feedback loop that will haunt us (and other first-world countries) well past the initial economic downturn.

November 23, 2013

Liz is speaking the truth again…

Filed under: 401K and IRAs — totallygroovygirlfriday @ 1:39 am

Click here. Elizabeth Warren is speaking the¬†truth again. Don’t know what that will get us, but it’s refreshing to hear from a politician. Elizabeth speaks on the House Floor about the Retirement crisis.

November 22, 2013

Some interesting educational items

Filed under: 401K and IRAs, DOW and S&P500, Stock Market — totallygroovygirlfriday @ 12:50 pm

Groovygirl gets newsletters from Robert Kiyosaki (Rich Dad) in her email box occasionally. One came in today that had an article explaining stock indexes that some readers may not be aware of. Click here and scroll down to page 3 to the article Equality for Everyone?

I know that people either love or hate Rich Dad. He usually has some good info and groovygirl¬†likes him because he teaches you to think,¬†not what to do. Groovygirl¬†learned more about accounting from his first book Rich Dad Poor Dad than from any accounting class she took. And every¬†accredited¬†investor that she has sat down with, they all say the same types of things about investing that Rich Dad says, just not necessarily¬†in the same way. So, if you don’t have access to a successful accredited investor as a mentor, Rich Dad’s books are a good starting point.

There was also a very good interview with Jim Rogers on Rich Dad’s radio show (about 40 minutes long). The link is in the newsletter link above.

November 21, 2013

John Williams from shadowstats.com

Free summary from John Williams at shadowstats.com. He has the real stats.

– Watch Out for the Dollar
– October Annual Inflation: 1.0% (CPI-U), 0.8% (CPI-W), 8.5% (ShadowStats)
– Retail Sales Gain Was Statistically Insignificant; Recession Signal Remained Intact
Official Real Earnings Declined in October
– Existing Home Sales Declined for the Month; Annual Growth Slowed Markedly

Groovygirl¬†looks at the spread between the real inflation rate, right now running around 8.5%, and the rates you can earn at the bank. Those are currently running better than recent months around 2%. Whoo-hoo! This gives a good idea about how far behind real people are falling. Someone living off of investments alone would have a hard time finding a consistant 8.5% return after taxes.¬†(Maybe real estate cash flow) If you compare a business/company’s annual gain and the real inflation stats, it will give you a quick look to see if they are falling behind too. Business annual reports are more complicated, but it directs you to which businesses to investigate further. You can do this with tax revenue for states, counties, and cities, etc. If they are not bringing in at least 8.5% more, then they have to cut somewhere at some point.

Easy money and credit have hidden these truths since the dollar began to really fall in 2001. Once liquidity evaporates for good, it is all over. We have experienced liquidity evaporating twice in the last decade and numerous examples from other countries in the last 5 years. We know what happens. It should not be a surprise when it happens again and you have no excuse not to be prepared.

Chart of the Day is an updated inflation-adjusted DOW chart. We keep hitting that resistance level. Click here.

Groovygirl¬†knows that everyone is excited about the stock market and “new highs”, but this chart of the day¬†shows:

  • A clear winter cycle since around 2000 or the dot.com bust
  • A firm resistance level at around $15,000 (inflation-adjusted)
  • After taxes, you may¬†have not made back your losses, even if you entered the market perfectly timed. Taxes are very important to consider in these times.
  • There were major swings in the¬†stock market during the Great Depression as well. This is not unusual.
  • We are really in the middle of the long-term trading channel. We could go up, we could go down…..

The recent drops in this winter cycle were driven¬†by bubbles popping and terrorist events. (dot.com pop, 9-11, and housing bubble pop) During a winter cycle, the market is very sensitive to outside forces. Confidence is easily and quickly lost and then regained. This is why buy and hold is not a good long-term strategy during a winter cycle. Groovygirl is not saying that you can’t make money during a winter cycle, it just isn’t the best time for a buy and hold pattern.

October 8, 2013

Latest Blog Post from Martin Atmstrong dated October 7, 2013

Click here for Martin Armstrong’s latest blog post entitled How Empires, Nations, and City States Die-We Seem To Be Right on Schedule dated October 7, 2013.

October 7, 2013

Russia joins the party

Filed under: 401K and IRAs, Economic Crisis, European Debt Implosion — totallygroovygirlfriday @ 9:20 am

to “borrow” pension funds for the protection of the people. Click here.

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