Economics and Politics

Economics and Politics play an important role in our investing. Theese articles will have a Constitutional Conervative and Libertarian point of view.

Risk On (ONN) and Risk Off (OFF) Trading Vehicles Now Available

December 12, 2011

Risk ONN, Risk OFF Simply put, the Risk On, Risk Off Trade is based on the tug of war between inflationary and deflationary forces. Since 2008 there has been a trend towards higher asset correlations which can be, at least partially, attributed to the risk on, risk off trade. Apparently UBS feels there is interest [...]

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How Does the Inflation Trend Affect Your Asset Allocation?

October 16, 2011

Asset allocation is the most important decision in determining portfolio returns. There are many factors that affect your portfolio asset allocation, but the macro inflation trend is one of the most important inputs in making this important decision. Inflation trends have a profound effect on how a portfolio should be structured. Historical studies show asset [...]

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Economics and Politics play an important role in our investing. Theese articles will have a Constitutional Conervative and Libertarian point of view.

Guide to Investing During Deflation

October 7, 2011

Deflation is when general prices for goods and services decrease. In other words, deflation is when the inflation rate falls below zero to a negative number. These time periods are rare and have a high correlation with a period of economic depression or severe recessions. For an asset allocation guide of other inflation scenarios we [...]

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Guide to Investing During Disinflation

September 30, 2011

Disinflation occurs when the rate of inflation is decreasing. Most investors don’t understand that historically it is the direction of inflation, not the rate of inflation, that has the largest effect on investment returns. For an asset allocation guide of other inflation scenarios we also look in past and future posts at: ·        Guide to [...]

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Economics and Politics play an important role in our investing. Theese articles will have a Constitutional Conervative and Libertarian point of view.

Guide to Investing During Increasing Inflation

September 27, 2011

For investing purposes the direction of inflation is more important than the absolute rate of inflation. Studies of historical data show that investments react much differently when inflation is accelerating than during periods of disinflation (rate of inflation is decreasing). In following posts we will examine an asset allocation guide for other inflation scenarios: ·        [...]

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This is the Reason We Don’t Have Economic Growth and Job Creation

August 30, 2011

Government policies are creating such uncertainty that capital (money) allocation is not being made to real investment. What is the Definition of Real Investment? Real investment is money invested in tangible and productive assets such as buildings and equipment, as opposed to investment in securities or other financial instruments. It is capital allocation to real [...]

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Economics and Politics play an important role in our investing. Theese articles will have a Constitutional Conervative and Libertarian point of view.

Economic Education: Ten Pillars of Economic Freedom

July 21, 2011

Economic Education Without principles and core beliefs an investor is like a ship without a rudder, and will be tossed about and swept away with the crowd; usually with a bad ending. A successful investor needs to stay educated on economics and politics because they affect every aspect of our lives, including how we invest [...]

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Countdown to 2012 Election – Welcome to the New Market Economy of Economic Stagflation

June 15, 2011

On my vacation in San Francisco last week I was at AT&T Park watching the Giants with my friend Jon. Jon was in line for a Crazy Crab Sandwich ($15.50 -buttered grilled sliced sourdough, crab salad, tomato plus $5.00 for a Coke), easily the best sandwich I’ve ever tasted at a ballpark. At the register [...]

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Economics and Politics play an important role in our investing. Theese articles will have a Constitutional Conervative and Libertarian point of view.

The Moral Argument for Economic Freedom

June 9, 2011

By Kevin Price Efficiency tends to be the prevailing argument for less government. We read and hear about how smaller governments are more responsible fiscally, encourage a predictable economic environment, help economies to grow, makes businesses more profitable, and much more. These things are true. Efficiency alone is a compelling argument for economic freedom, which [...]

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Is Biflation Creating Global Stagflation?

April 27, 2011

The forces of simultaneous inflation and deflation (named Biflation) ) are threatening to create global stagflation.  Inflation and deflation are powerful forces that can have profound effects on employment, economic growth, and wealth creation. What is Biflation? Biflation is simultaneous inflation and deflation. As the Central Banks around the world increase the money supply through [...]

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