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A Little Relief at the Pump

July 25, 2008
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I went out at lunch today to get some gasoline before heading up to Lake Winnipesaukee in New Hampshire for the weekend and I got a very pleasant surprise. The per gallon price had dropped yet again to $3.91! This is down from $3.99 earlier in the week and about $4.12 at its peak in this area of Massachusetts. It’s sort of sad that a gallon of gasoline that costs $3.91 makes me so happy, but after watching the price skyrocket week after week (and sometimes day after day), it’s a welcome relief to see the price coming down....

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Stock Benefits from China’s Hunger for Steel

July 23, 2008
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For today’s stock, my recommendation is a mid-sized ($1 billion in revenues) steelmaker named General Steel Holdings (GSI). Here’s what Paul Goodwin of Cabot China & Emerging Markets Report wrote a month ago in that publication: “China’s appetite for steel is enormous, gobbling up about one-third of the world’s output every year.  The country is also no slouch as a producer, turning out about a third of the world’s yearly total. In an environment of consolidating giants and government planning, there is one small company that has found a profitable strategy and is growing strongly.  It’s General Steel Holdings,...

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Bubbles Spell Trouble

July 21, 2008
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Bubbles occur when crowds of people (including investors) behave irrationally.  It has spelled trouble throughout time. The first recorded financial bubble occurred in 1636 when tulip mania hit the Netherlands.  Tulips became a luxury item and status symbol because of their vivid mosaic coloring.  Demand increased rapidly, pushing prices up to foolish heights.  Futures contracts were developed to enable buyers to buy next year’s crop.  Tulips began trading on exchanges. Speculators–not growers–bought bulbs and tulips expecting to resell them at higher prices.  At the top, one tulip bulb could fetch the equivalent of 20 years of wages for a...

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Hemlines Follow Market Movements

July 17, 2008
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Today’s The New York Times Style section includes an entertaining story about skirt and dress hemlines corresponding to stock market and economic trends. The writer pointed out that in times of economic prosperity, especially when the stock market is up, so are hemlines. Miniskirts were all the rage during the 1960s but with the economic downturn of the 1970s, hemlines were down, too. Maxidresses were popping up everywhere. The same is true today. The last several years saw high hemlines coinciding with booming economic times. But recently, celebrities and regular Joes (Janes?) have been spotted wearing long, flowy dresses,...

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