“Don’t be one of those people who go through life pretending not to know what they know… Don’t waste time wishing the world is different than it is… Don’t expect people to be something they can’t.”
— Richard Russo
Hillary, Mitt, Barack or Mike… Who’s to say?
Americans turned to the Hawkeye State ...read more
As the World Turns
Dec 21st, 2007 | By Christopher Hancock | Category: Housing
“I do not doubt that a low U.S. federal funds rate in response to the dot-com crash, and especially the 1% rate set in mid-2003 to counter potential deflation, lowered interest rates on adjustable-rate mortgages (ARMs) and may have contributed to the rise in U.S. home prices.”
— Alan Greenspan
Morgan Stanley ...read more
Penny Stock Infrastructure Stocks
Dec 7th, 2007 | By Christopher Hancock | Category: Penny stocks
My passion for infrastructure began at an early age, a deeply ingrained, natural byproduct of my upbringing. You see, my father, the former mayor of a small West Virginia town, worked relentlessly to rebuild our quaint little version of southern comfort from the ground up. For better or worse, he ...read more
Investing in European Banks
Nov 30th, 2007 | By Christopher Hancock | Category: Housing, International
Noah Rosenblatt of UrbanDigs.com reports that roughly $355 billion of subprime, alt-A, prime and Fannie/Freddie-backed loans are due to reset in 2008:
Our colleague, Dan Denning, reports that a majority of these ARMs due to reset held initial rates that ranged from 6-9%. This represents subprime territory. And the folks ...read more
Chinese Deserts and Water Stocks
Nov 16th, 2007 | By Christopher Hancock | Category: International
Chinese deserts are on the move…
Each year, the Gobi Desert devours 2,460 square miles of Chinese soil, an area roughly the size of Delaware. Violent sandstorms threaten to conquer Beijing. Dunes now tower just 43 miles from the ancient capital…firmly marching south, like Sherman through the soft Georgia pines, ...read more
S&P Woes
Nov 9th, 2007 | By Christopher Hancock | Category: Macroeconomics
Halloween came. Bernanke cut rates. Markets responded.
The world’s “benchmark” index fell off the cliff. The S&P has fallen 6.2% in less than two weeks:
Consequently, stock returns look more like bond returns. The S&P limps along at 4.51% year to date. In euro terms, the world’s “benchmark” bleeds red. ...read more
Beating the S&P 500
Nov 2nd, 2007 | By Christopher Hancock | Category: International, Investing Strategies
Bernanke cut rates once again. Markets responded. The Standard & Poor's 500 Index rose an admirable 1.2%. Investors cheered.
The S&P, the world’s benchmark index, has returned just over 9% year-to-date. That’s not half bad.
But how much money are you really making if your portfolio “beats the market?”
Unfortunately, beating the S&P ...read more
Beating the S&P 500
Oct 26th, 2007 | By Christopher Hancock | Category: International, Investing Strategies
Beating the S&P 500… That's the focus of modern investing in America.
Every professional investor wants to beat the S&P — both for the sake of ego and for the sake of continuing employment. A fund manager's performance relative to the S&P has become like a golf handicap — a source ...read more
Cost of Living Concerns
Oct 19th, 2007 | By Christopher Hancock | Category: Energy, Macroeconomics
Have you ever heard of the term “COLA”?
Most Americans haven’t, but I wish they had.
COLA stands for “cost-of-living adjustment.”
The cost-of-living adjustment determines the annual increase (raise) you see in your Social Security check each year.
Typically, adjustments are based on the annual increase in consumer prices, or the consumer price index ...read more
American Dollar Continues Heading South
Oct 12th, 2007 | By Christopher Hancock | Category: Investing Strategies
On Aug. 1, 2007, every child’s worst nightmare actually came true.
The I-35W Mississippi River bridge collapsed in Minneapolis…killing 13 and injuring 100 motorists.
“This is a catastrophe of historic proportions," said Minnesota Gov. Tim Pawlenty.
For decades, federal inspectors knew that a flaw in the structure of the eight-lane bridge could easily ...read more

