Concerned over rising interest rates?

It was widely reported that Friday’s stock market sell off was based upon the fact that the Federal Reserve would be raising short term interest rates sooner rather than later (summer vs. fall?). But when you look at a chart of the 2yr US Treasury Note yields, one can see that interest rates have been rising since mid 2013. So was it really a concern over rising rates or just an excuse to take profits?
This post is for educational purposes and is not intended to be trading advice.

Cisco Systems

March of 2000, 14+ years ago. That’s when the stock of Cisco Systems peaked at $74. Today it trades at $27. In 2008, 2010 and 2013 it ran into resistance in the $25 area but has recently move above that area. Think of resistance as the point where buyers stopped buying and sellers began selling! Next resistance point would be the 2007 high of $31. Do you see these price points? How long will you hold a stock just to get back to even?

This post is for educational purposes and is not intended to be trading advice.

Can you imagine?

As banks reopen today in Cyprus, NPR shares this thought…

Invesco-PowerShares has some very creative commercials, unfortunately we hear stories like this all the time…

Quite a few 7% Zigs and Zags since June, 12 in fact!


Occupy Wall Street has been in the news today as protesters have been evicted from Zuccotti Park in lower Manhattan. But who are they?

I hope you’re taking advantage of tax free growth by contributing to your companies 401(k) retirement savings plan.

NEW YORK (CNNMoney) — You’ll be able to contribute more tax-free money to your 401(k) next year, the IRS announced Thursday.

The contribution limit for employees participating in pension plans — including 401(k)s, 403(b)s, most 457 plans and the federal government’sThrift Savings Plan will be $17,000 for tax year 2012.

 That’s $500 higher than the $16,500 limit this year, and marks the first increase since 2009, the IRS said. The reason? Rising inflation.

And pension contribution limits aren’t the only amounts the agency has had to boost due to the rising cost of living.

Starting in 2012, taxpayers will also be allowed to claim personal exemptions of $3,800 — up $100 from 2011, the IRS also announced Thursday.

The new standard deduction will be raised by $300 for married couples, by $150 for singles and by $200 for heads of household. Tax bracket thresholds will also be higher for 2012.

My twins are eating my retirement savings

The maximum Earned Income Tax Credit is $5,891 for 2012, up from $5,751 in 2011. And the qualifying income limit has been boosted as well — to $50,270 in 2012, from $49,078 this year. Several other tax benefits — including the foreign income deduction and the annual deductible amounts for Medical Savings Accounts — will also go up.

Other benefits, including the additional standard deduction for blind people and senior citizens, remain unchanged.

Many senior citizens will be helped in another way next year, however. Social Security recipients will receive a cost of living adjustment of 3.6%starting in January — the first raise in three years.  To top of page

Presidential Election futures

Were you aware that there is a market for Presidential Election futures? (informational purposes only)

Black Monday

October 19, 1987…known as Black Monday. I was 3 years into my new career as a financial adviser with now defunct firm EF Hutton. I didn’t understand trends, relative strength or any of the investment theories that I rely on today.
The Friday before the market was down 108 points (which is nothing today), then to walk in on Monday morning and realize there was nothing you could do as the markets didn’t sell off slowly, they opened down, stayed down and sold off more over the next few days. -22% in 1 day. Still hard to believe.

What to do about Greece

Courtesy of the people at Strator Global Intelligence