One of my goals in my newsletter is to bring to your awareness things that I find interesting or alarming. The article below is in the “alarming” category. Japan borows more than it raises in taxes, and its debt amounts to two years’ worth of Japan’s economic output. Japan has the highest debt-to-GDP ratio in the world. Half of the country’s tax income is directed to simply servicing it’s debt. In addition to Europe and China (which I’ve written about in the past), Japan is one of the next huge players we’ll be unraveling in the future. I have great ... Read More
The 3rd Quarter 2011 is over and I have a slightly longer video this week because I want to address the current environment and how things may shape up going forward. A big theme is my advice to assess your overall plan and risk tolerance, and also to ensure you’re looking at both positive and negative points of view on the markets instead of just one view over the other. I send my newsletter and videos on a weekly basis, so if you watch only a few througout the year, at least watch my more comprehensive quarterly videos. Click to ... Read More
Like it or not, globalization is here to stay. Japan, and the impact on supply chains throughout the world, is only going to reinforce the move towards a diverse, diffused world economy. In the coming years, we’ll see an even greater push toward interrelatedness amongst countries, and each country’s businesses will rely on many countries for their materials. Diversification of supply is key. Japan is going to recover and recover quickly. TRANSCRIPT: Hi Clients and Friends, Mike Brady here. This week I want to talk about globalization. It’s here to stay and Japan is just an example of why it’s ... Read More
The tsunami that hit Japan last week and has affected their nuclear reactors is causing great concern in the stock markets. The Nikkei dropped 11% a few nights ago. The US markets have dropped 2% this morning (Tuesday as I write this). Now is the time to determine if you’re gambling or investing?. Is this an emotional sell off or a harbinger of things to come? I discuss Emotional Selling in my video this week. TRANSCRIPT: Good Morning Clients and Friends, Mike Brady here. This week I want to talk about emotional selling. The tsunami hit Japan late last week. ... Read More
The article I link to below expands on the themes I bring up in my weekly video. You want a double dose of “emotional selling”? You know you do. Click on the link. Don‘t forget the unexpected happens. The “Peace Dividend” after the Berlin Wall (quite a euphoric event) saw the next 2 years in a stock market recession. After 9/11? 6 year stock rally ensued. It is uncertain the long term effect of the Japanese troubles. Let’s not make long term decisions based on short term emotions. That’s what separates the amateurs from the pros. Be a pro. CLICK ... Read More
Japan has been in a continued recession for the past 20 years. The deficit levels of the Japan government are among the highest of the developed countries, and expected to increase in the coming years. This is not good news for Japan. As the rating decreases, the extra premium paid to borrow money goes up. So, a 3% cost of borrow might increase to 4%. Anyway, this is something to watch as the United States deficit to GDP is increasing rapidly. CLICK FOR FULL ARTICLE – S&P DOWNGRADES JAPAN FROM AA TO AA- Read More
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The Dow Jones Industrial Average is an unmanaged, price-weighted index of 30 large capitalization stocks with dividends reinvested.
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