How Low Can You Go?

We have repeatedly stated that we believe interest rates will remain low and eventually go lower. This has been somewhat of a contrary view in that most people can list a litany of reasons why interest rates will rise. For example:

Everyone Has Nothing

After experiencing the WORST December stock market in over eighty-five years, we had the BEST January in thirty years. That’s right, after dropping over 9% in December, the S&P 500 gained 8% in January. Not quite back to even, but enough to help nervous investors sleep better. But before those investors get too comfortable, we…

December to Remember

The good old days. A gallon of gas cost 10 cents. You could buy a house and a car for less than $8,000. Construction of the Empire State Building was completed, and gambling was legalized in Nevada. The country was in the grips of “The Great Depression” and the unemployment rate exceeded 16%.

What Did You Expect?

U.S. stocks are down almost 10% since they peaked September 20th and some investors are starting to act disappointed and concerned. To them we say, “What did you expect? Stocks have increased in value almost nonstop for over nine years. Were you expecting that to just continue and continue?” Did you honestly think that a…

Free Dinners Aren’t Free

Every week we receive mail inviting us to a “Free Steak Dinner” at a local high-end restaurant. Sometimes twice a week. The offer usually comes with the promise of helping to reduce or avoid taxes in retirement. Virtually all of these free dinners are conducted by financial advisors (we use that term very loosely) whose…