What we make of it is that dividends used to account for a much larger percentage of your total return in stocks than they have in the last twenty years. Times change. There’s no rule that says the future has to be just like the past. But if stocks beat inflation, should you invest in stocks for income or capital appreciation? That’s the second question.
October 19th, 2009 | Dan Denning | 4 comments | ContinuedAll Posts Tagged With: "U.S. dollar"
Aussie Dollar is Crushing Long-time Rivals Like the Pound and the U.S. Dollar
One way to view a currency, we read somewhere recently, is as a national obligation secured by national assets. Those “assets” are loosely defined as economic growth (GDP) or the tax revenues a government can generate. A growing economy generates royalties and income taxes and demonstrates to international bond investors Australia’s ability to service interest and principal on debt.
October 9th, 2009 | Dan Denning | 18 comments | Continued
Aussie Dollar Ready to Storm Past US Dollar
Yesterday’s episode of the Daily Reckoning left off with the question of whether 5,000 was in sight on the ASX 200. The answer today is that it is just over the horizon. The index closed up 2.3% to 4,695. The more investors thought about the recovery/China/demise of the dollar story, the more they liked buying stocks (especially gold stocks).
October 8th, 2009 | Dan Denning | 26 comments | Continued
When it Comes to Economic Health, Nothing Beats a Depression
According to a pair of researchers from the University of Michigan, a depression does more for longevity than diet or exercise.
October 5th, 2009 | Bill Bonner | 0 comments | Continued
Big Difference Between Stark News in Job Market and Behaviour of Stock Market
There have been jobless recoveries from recession before. But you still have to wonder how there can be such a big difference between the stark news in the job market and the behaviour of the stock market. True, economists will tell you that jobs are the last thing to recover from a recession. Businesses don’t hire until they are sure everything is in the clear.
October 5th, 2009 | Dan Denning | 4 comments | Continued
Inflation is Our Future
On one hand, the deflationists are claiming that given the extremely high debt levels in the West, further inflation is impossible.
September 30th, 2009 | Puru Saxena | 4 comments | Continued
Underlying Demand During a Housing Shortage
That is clever to suggest that when rates rise people will have to find another way to say that houses are affordable. But we reckon when rates rise, as they eventually must, a lot of new home buyers will find out that access to cheap credit does not make a house affordable. It just makes the amount of debt you owe to the bank a lot larger.
September 30th, 2009 | Dan Denning | 41 comments | Continued
US Dollar is Getting Trashed
“In other words, leveraged speculators are borrowing US dollars in the short-term money markets at near-zero rates to buy bonds in higher- yielding currencies like the Australian dollar or the euro.
September 29th, 2009 | Bill Bonner | 7 comments | Continued
The Dollar Left Behind
“HSBC bids farewell to dollar supremacy,” writes Ambrose Evans Pritchard at the UK’s Telegraph. “The sun is setting on the US dollar as the ultra-loose monetary policy…
September 25th, 2009 | Dan Denning | 6 comments | Continued
US Dollar Declining as China’s Currency Rises
“We may now be entering the Asian century, dominated by a rising China and its currency. This decline of the dollar might take more than a decade, but it could happen even sooner…
September 23rd, 2009 | Bill Bonner | 5 comments | Continued