With the most likely increase in dividend tax rate in 2013, some cash-rich companies, esp. the smaller ones with a lot of insider ownership, may give a large ex-dividend (like $10 for a $15 stock) before the end of the year. The stock price should be adjusted accordingly in theory.
If you have a buy order for this kind of stocks, you may pay more than the market prices. To illustrate, you have a buy order for the mentioned company at $14 ($1 off the current price). After the dividend of $10, in theory the price of the stock falls to $5 and your order is executed at $14. You have an instant loss of $9 and since you have not met the requirement of owning the stock at a specific date, you may not get the $10 dividend.
I do not say it will happen for most of your buy orders as I do not know how the SEC handles this specific scenario. Just be careful.
Friday, September 28, 2012
Wednesday, September 26, 2012
Careful on what you read
Especially on articles on investing.
One guy gives financial advices on how to invest and he has never invested $1 in the stock market in his life.
One lady clips coupons while writing articles to tell us how to invest. For her age, it is not possible for her to give any investing lessons to retirees from real experiences.
Surprisingly they are both popular. We have to blame ourselves if we screw us in following their advices.
I praise the writers who describe their bad experiences and mistakes. We can learn from them.
One guy gives financial advices on how to invest and he has never invested $1 in the stock market in his life.
One lady clips coupons while writing articles to tell us how to invest. For her age, it is not possible for her to give any investing lessons to retirees from real experiences.
Surprisingly they are both popular. We have to blame ourselves if we screw us in following their advices.
I praise the writers who describe their bad experiences and mistakes. We can learn from them.
Stock over priced indicator?
I came across the following. Will find time to prove it. Sounds logical.
Looking at the small cap banks KRE as a valuation indicator, it's at PB=1 same as XLF.
The biggest crashes came when one of two sectors are excessively overvalued, XLF or XLF:
neither one is right now. XLK is at PE=17 XLF at PB=1
Even if the SPY is to correct, it will just be like the one last year, 15-20% that's easily endured.
Looking at the small cap banks KRE as a valuation indicator, it's at PB=1 same as XLF.
The biggest crashes came when one of two sectors are excessively overvalued, XLF or XLF:
neither one is right now. XLK is at PE=17 XLF at PB=1
Even if the SPY is to correct, it will just be like the one last year, 15-20% that's easily endured.
Monday, September 24, 2012
Advices for retirees
Here are the blogs related to the topic:
Retirees, take note.
http://bit.ly/NBRygH
Advice for a 70 year old
http://bit.ly/I5eeax
The best investment idea that has nothing to do with money.
Advice for the richer retirees.
http://bit.ly/QfCHLM
Forget AARP.
http://bit.ly/PfuIi0
There are real experiences from me and my friends.
Retirees, take note.
http://bit.ly/NBRygH
Advice for a 70 year old
http://bit.ly/I5eeax
The best investment idea that has nothing to do with money.
Advice for the richer retirees.
http://bit.ly/QfCHLM
Forget AARP.
http://bit.ly/PfuIi0
There are real experiences from me and my friends.
Sunday, September 23, 2012
Tang and Sung
Tang could be the most powerful period. I am surprised that Sung has higher per capita GDP.
When the country is rich ancient or present, they have time to develop art, poems, music...
Try Google with Tang GDP and this link appears.
----
I read something like "Once Chinese wore silk dresses and lived in houses, and the west lived wore animal skins and lived in caves".
Will try to identify the period. Seems to be earlier than 2000 B.C.
It does not mean anything except to boost my dumb nationalism. It is similar to Cheng Ho. Even if he discovered America first, his influence was nil compared to Columbus.
When the country is rich ancient or present, they have time to develop art, poems, music...
Try Google with Tang GDP and this link appears.
----
I read something like "Once Chinese wore silk dresses and lived in houses, and the west lived wore animal skins and lived in caves".
Will try to identify the period. Seems to be earlier than 2000 B.C.
It does not mean anything except to boost my dumb nationalism. It is similar to Cheng Ho. Even if he discovered America first, his influence was nil compared to Columbus.
When U.S. cannot pay back the debts
It is not possible for us to pay back our debts for generations. In a
capitalist system, if you cannot pay your mortgage, your house is
foreclosed. It should happen to the countries, but in reality it does not. Assuming
we can, here are my suggestions.
1. Sell Alaska to Russia in exchange for oil as China insists not to receive the depreciating USD which is another scheme to lower the debt burden. Include the big-mouth Sarah P. and her dysfunctional family as a compulsory clause, not a bonus.
2. Sell Hawaii to Japan. We're very smart here as Japanese already own Hawaii, like selling something we do not have in the first place. Smart move.
3. Sell NYC to China. NYC was originally owned by Indians who were Chinese and lost their way after too many Ma Ties and crossed the frozen strait. I have my genes to prove it. Consider no capital gain tax which could be astronomical. We're the smartest folks on earth.
4. California to the highest bidder. Most likely the successful bidder is a drug lord who could improve the distribution routes and buy gun easier to enforce their kingdom. Do it early before the big earthquake, which could make California a liability instead of an asset (Japan is a recent example).
--
At one time we have enough USD to buy Canada. What happens?
1. Sell Alaska to Russia in exchange for oil as China insists not to receive the depreciating USD which is another scheme to lower the debt burden. Include the big-mouth Sarah P. and her dysfunctional family as a compulsory clause, not a bonus.
2. Sell Hawaii to Japan. We're very smart here as Japanese already own Hawaii, like selling something we do not have in the first place. Smart move.
3. Sell NYC to China. NYC was originally owned by Indians who were Chinese and lost their way after too many Ma Ties and crossed the frozen strait. I have my genes to prove it. Consider no capital gain tax which could be astronomical. We're the smartest folks on earth.
4. California to the highest bidder. Most likely the successful bidder is a drug lord who could improve the distribution routes and buy gun easier to enforce their kingdom. Do it early before the big earthquake, which could make California a liability instead of an asset (Japan is a recent example).
--
At one time we have enough USD to buy Canada. What happens?
Zero sum game?
Every trade consists of a winner and a loser. It is important to stay in the winner side. The argument saying trading is not important as they can be a loser or they do not want others to suffer does not make a lot of sense to me.
To illustrate, I sold all my tech sectors in the beginning of April 2000 (should be earlier). I made my profit and I do not really care who are the losers on the other side of the trade. It enforces the point that timing is important and stocks with P/Es over 50 are risky. Simple concept similar to 'greed and fear' repeats itself time after time.
To illustrate, I sold all my tech sectors in the beginning of April 2000 (should be earlier). I made my profit and I do not really care who are the losers on the other side of the trade. It enforces the point that timing is important and stocks with P/Es over 50 are risky. Simple concept similar to 'greed and fear' repeats itself time after time.
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