Cudo's to Obama.



From Fox News - Click Here for Source

Good for President Obama to openly consult with President Clinton on the economy (and of course political strategy).  I think this will get a positive reaction from the American people and the business community.  Clinton is starting to sound like a statesman. -JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Changing Interest Rates, Heads Up !!



Click to Enlarge

The recent surge in interest rates (see 5 Year Treasury Yield above) came in response to the change in political winds and prospects of a more balanced economic policy from Washington.  We are seeing some small increases in offer yields from fixed annuity providers, and there has been a crack in the value of high quality bond funds. 

It is time to review all bond funds to see how sensitive they are to this rate increase as it appears likely that the trend up will continue in the short run.

Also, since short term rates are still pined down near zero by the FED, the time is approaching soon to take advantage of fixed income investments (individual bonds, CD's etc) in the 2_5 year maturity range. 

This is also a positive indicator for the stock market. -JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Bill Me later?? - WARNING!

While we are all happily shopping on and off line, I just wanted to share a recent experience with the "BillMeLater" credit service.  We are accustom to this being a payment deferral (typically 6 months) that represents another discount on the purchase of an item.  When this popped up as a choice for a office computer purchase, I just clicked it and assumed I would not have to pay for six months and could avoid any interest charges, as I have in the past.  After getting my first late warning less than 30 days after the purchase, I called to find both a $25 late payment charge and that I was being charged interest at the rate of 19.99%. 

After calling "Customer Service",  "Amy A" explained that the 6 month promotion is only if it says "Same as Cash" or "6 Months Deferred Interest" on the offer from the company, and that if it just says "BillMeLater", it is just like any other credit card and the first payment is due on the first billing cycle.

I opined that a this seemed misleading and she promptly credited back the $25  charge as a "one time courtesy."

Welcome to the new Financial Regulation bill and credit reform!  Caveat emptor!

-JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

No Oil Drilling? Again? What's up with this?

Ken Salazar

"Virginia’s plan to be the first East Coast state to have oil drilling off its shores was scuttled Wednesday after Interior Secretary Ken Salazar let it be known that new drilling leases will be a long time coming."    LoudounTimes.com -JOHN

My Thoughts:

1.  This will decrease our Energy Independence and therefore reduce out National Security.
2.  This will prevent jobs or cause jobs to be lost when we are spending Billions to try and create jobs.
3.  This will decrease Oil supply and thereby put upward pressure on Oil Prices.
4.  To reduce the risk of a spill, put some unemployed oil engineers to work improving safety.
5.  Who is pulling the strings of the Administration.

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.

Pumping Up the Asset Bubble

The attached article from Bloomberg discusses Philadelphia FED President's comments on the threat of inflation from the current 600 Billion in Quantitative Easing.  But isn't this the intent?  Inflation means that government pays back debt with cheaper dollars and all the government and private pension plans are sorely underfunded due to the 2008 losses.  Buy your necessities now if you can, and keep your money in the equity market.  As our economist George Dagnino says, "Don't fight the FED!"  They are pumping up the asset values on purpose.
-JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.