Tuesday, September 29, 2009

Financial Musings...

As the dollar continues to fall and the US budget deficit soars, here are some random thoughts on the US economy, our government, capital markets and traditional financial planning concepts:

  • The world economic powers by century: 1800's = England; 1900's = USA; 2000's = ? (I'd bet on China).

  • Why do people tend to invest in their own backyard? Most growth models still recommend an 80/20 split between US and foreign investments. If we lived in Norway, would they recommend 20% Norway, 80% USA?

  • If individuals are supposed to balance household budgets or risk going bankrupt, shouldn't the US government be held to the same standards?

  • Why are foreign investments considered riskier than American?

  • When did "Made In the USA" became a relic?

  • If 'buy what you know' is a good thing, wouldn't everyone own Sony, Dannon, Toyota, Nokia, Fox Media, Cadbury, etc. (all foreign companies).

  • Is the US dollar a more stable currency than the Euro, Australian dollar or Swiss Franc?

  • If individuals were heading west today to stake a claim, pan for gold, etc., would they be as successful as as yesteryear with today's government imposed regulations?

  • Is inflation in the USA really 2%?

  • Is the "No Tax Without Representation" slogan coming back into vogue?

  • Whatever happened to "Less government is good government"?

  • In terms of age, if "40 is the new 20, " what is the 'new' retirement age?

  • Is the USA still a capitalistic society?

  • When did political parties become so divided?

  • What would happen if the US dollar collapsed?

  • With reduced levels of corporate debt (aka leverage), what type of returns can be expected for cash, bond & stock investments going forward... 2%, 4%, 6%?

  • How important is social security in your retirement plan?

  • Is gold a good investment?

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