So we got home and re-lit the pilot but it kept going out. A friend told us to replace the thermostat before taking anything apart in the floor. If the thermostat (which was 40 years old) was bad then there would be no spark to run the heater which somehow caused the pilot to go out. The thermostat unscrewed from the wall and had only two wires, red and white. A new thermostat cost $17 at Home Depot (we went
Seeking out a solution in the actual unit would have required taking things (what's a thermocouple?) apart in a tiny crawl space in the dirt which would have taken more than six minutes and in this case not fixed the problem.
I think there are several ways to apply this (this being simple and cheap) to investing in terms of strategy, products chosen, method of analysis and anything else you can come up with. Just keep it simple relative to the time you want to put in and stick to cheap, easy to understand products. Like many things, investing doesn't have to be that difficult.
I found this image on a post from Prieur du Plessis. Hopefully we won't end up needing two or three of these to go to the grocery store.
9 comments:
I have a very simple way for investors to make easy returns of 8 - 10% per year. If they introduce their friends they might make even more!
Thanks Roger. The post from Prieur du Plessis was engrossing. I copied just a few paragraphs that might be captivating enough for all to read.
-But investor angst was never completely allayed as seen from the yields on US one- and three-month Treasury Bills briefly trading in negative territory for the first time since 1940, indicating the willingness of risk-averse investors to pay the government for the “privilege” of holding their money.
-Back to the issue of markets shrugging off bad news for the second week running. Richard Russell (Dow Theory Letters) commented as follows: “On top of everything else, Lowry’s Selling Pressure Index dropped substantially yesterday [Wednesday] and is now in a definite declining trend. At the same time, Lowry’s Buying Power Index is trending higher. Thus, the odds are saying that the trend of the stock market is turning up.
-Now that the Fed is paying interest to banks, why did the Fed allow the funds rate to trade at zero? Yep, they are terrified by something.”
-A positive for the bulls is that the period post Thanksgiving through the end of the year has usually been a bullish time for stocks, based on studies by Jeffrey Hirsch (Stock Trader’s Almanac). Should the bullish seasonal tendencies provide a tailwind on this occasion, possible first targets are the 50-day moving averages of 8,784 for the Dow Jones Industrial Index (current level 8,630) and 910 for the S&P 500 Index (current level 880).
-The last word on equities goes to Hong Kong-based Puru Saxena: “I cannot say with any certainty whether we are already in the early stages of the next cycle. Under my best case scenario, we are in the very early stages of a new multi-year bull market. And under my worst case scenario, we are going to get a very strong rebound (30% move higher in the S&P 500) over a short period of time, which will probably take the markets back to their 200-day moving averages.”
Richard Spring. WSJ: A Boca Raton resident and former securities analyst, says he had about $11 million — or 95% of his net worth — invested with Mr. Madoff. “That’s how much I believed in him,” Mr. Spring said.
Poster boy for diversification
Hi Roger,
Love your stuff. Here's a "cute" post about Bernanke's uncanny resemblance to Charles Ponzi. Take care.
guidepostings.blogspot.com
What large bank or banks looks the best going forward, relatively speaking.
The Madoff list:
http://tinyurl.com/6jeofy
Fed funds is effectively at zero but the target rate is at 1% which will be lowered tomorrow.
the target rate is the rate that the FED NOW pays interest to banks on deposits.
They have to lower the target to .5 or .25% because the effective rate is around .13 basis points. This should hinder the liquidity trap effect of banks earning 1% on over night deposits with the fed.
we are screwed....
also ... Quant easing... check out Macro man's blog.
ECB has already begun the quant easing over the past three years and would you be surprised that the ECB has more on their balance sheet of insolvent assets?
yup. 2.5 trillion ECB vs 2 trillion FED.
hmmm... who would of thought that?
Maybe the weakness on the dollar will be a fools trade when the next phase of deleveraging starts.
nothng is what it seems.
Bull market soon, multi year?? We haven't even got halfway through the multi year bear market.
That is total ignorance for what is going on in the credit markets.
Credit = money... as credit is being destroyed so it money. Peak leverage is behind us... we will never see earnings like we did in the past as people now identify risk.
buckle down for a whole lot of less going forward until some revolutionary technology comes to surface. we could only be so lucky to be the country that actual invents it....
"Past" earnings are about 6%. There's no concrete reason that we won't be at that norm in the future.
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