Wednesday, May 19, 2010

Buyer Beware...

Buyer Beware...
If you think the new credit card laws which were supposed to protect consumers are going to help you, guess again. As it turns out, some of the most damning aspects of credit card abuse have been addressed. However, we would be remiss to believe that the laws have no benefit to credit card companies. Take the new finance charges that will be assessed on anyone who carries a balance. In the old days, anyone carrying a balance would be assessed a finance charge based on the amount of money they carried over from one month to the next. Now credit card companies are allowed to charge consumers on the entire balance of the credit card, not just the carry over. For instance, a customer who carries $1000.00 from one month to the next but services the remainder of a $4000.00 balance will have finance charges based on the entire bill for that month even though there was only a $1000.00 carry over.  A finance charge that should be somewhere in the area of $11.00 now becomes $46.00. Pretty scary huh?  And to think, congress actually voted on these changes and the President of the United States actually signed off on it. Something tells me this will be campaign fodder around election time.

STOCK MOVES
Treasuries have become the flavor of the month once again...  It is not to say that they by any stretch are a good investment, but it sure as heck beats watching your holdings slip little by little into oblivion!!!  Of course last month stock guru's would have told you that inflation was the big fear. Now with stagnant job growth, small salary increases and in some cases cuts, and a housing market that is stabilizing at best, some on the street are whispering deflation.  I for one believe this was always a scenario that could play out... the question a reader of megatrends and I discussed is "now what?"  If the market can only be played on a short side... what are investors to do?  Ax at the Bigbigbet has opened short positions to "cover" the backside of his longs... not a bad strategy as he will undoubtedly make money on both sides of the transaction.  As I am certain banks and value-based stocks will be back by the end of the month... Especially if banking reforms are effective as credit card reforms. Maybe the best money invested are the endeavors that the individual investor has direct control over. Anything beyond the grasp of the individual investor simply becomes a parlay... and as any better will tell you the more variables involved in a parlay, the more likely it is to lose.


LONG TERM
Precious metals seem to be a winner... and appear to have the best opportunity to move...
Foods... especially organic foods are a new item of interest...
Biomedical with emphasis on preventive medicine...
Technology as I truly believe we will innovative our way out of this mess eventually...
Banking... anyone that can arrange a loan to themselves for 728 Billion dollars has a lot of clout... even if and when the money is paid back understand that the rules of Wall Street and Main Street are worlds apart. 

1 comment:

catharine said...

Hey ! Genuinely it’s really possible to earn money online; I really felt that this website is quite impressive and a great idea to earn hundred’s of Dollars daily.

VISIT : http://www.earnglobalmoney.info