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Monthly Archives: February 2009

Do You Want to Make Money or Fix the Economy?

February 9, 2009
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Do You Want to Make Money or Fix the Economy?

A friend of mine who’s an investment advisor recently wrote, “I’m wondering if you might address the very gloomy speech Nouriel Roubini made recently which has been all over YouTube.  Also, I’m worried about students getting out of school with loans that need to be repaid and poor prospects for employment. Credit card debt is one thing, and may have a stigma attached, but student loans are socially encouraged. Are you aware of any program addressing this issue, other than personal bankruptcy? It’s going to be devastating.” In response, I took a look at a couple of Roubini’s videos. ...

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An Unreliable Technical Indicator

February 7, 2009
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Today I want to start off with a word about a certain technical indicator you’ve probably heard a lot about this week. It’s a prediction that gets made every year at this time by Punxsutawney Phil, a Pennsylvania groundhog, who sticks his head out of the ground on February 2 to predict whether winter is here to stay or if spring will come early. As you’ve probably heard, the resident rodent saw his shadow, meaning that we’re in for six more weeks of winter. In Massachusetts, where Cabot is located, this comes as no surprise. Truth be told, whether...

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Is Timothy Geithner Crooked or Just Stoopid?

February 6, 2009
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We start today with a follow-up to last week’s column, in which I wrote, “Timothy Geithner won approval as Secretary of the Treasury, despite the fact that he’d failed to pay enough tax in 2001, 2002, 2003 and 2004.  Do we need any more evidence that our tax code is too complicated?  Simplify, simplify, simplify, and let thousands of CPAs and tax lawyers and lobbyists find productive work.” In response, D.T. from Alaska wrote, “You are assuming or maybe concluding that Timothy Geithner did not knowingly cheat on his taxes.  With the plethora of examples in the media (and...

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Dollar Tree: Not Sexy but Still Attractive

February 5, 2009
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Dollar Tree: Not Sexy but Still Attractive

Though last month was the worst January on record, not much has changed in terms of the market’s overall stance–the bulls are not in control, but the selling pressures, while gradually picking up, are not anywhere as intense as they were most of last fall.  So a potential bottom-building process continues. And much of the market’s potential leadership remains the same–education, biotech and now some precious metal stocks are hanging in there well.  But instead of harping on another stock from one of those groups, I thought I’d mention a slow, steady grower that’s been acting superbly in recent...

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The Lowdown on Value Investing

February 4, 2009
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The Lowdown on Value Investing

Today I’m bringing you a Q&A with Cabot Benjamin Graham Value Letter Editor J. Royden Ward. You haven’t heard from him in a while, so I wanted to bring you up to speed on his latest thinking about what happened in 2008 and where he sees the stock market and value stocks headed in 2009 and beyond. But first, a little background … Cabot Benjamin Graham Value Letter, launched in 2003, uses the teachings of Benjamin Graham, the father of value investing, in a system that safely builds long-lasting wealth. Unlike Cabot’s growth publications, the letter doesn’t use market...

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