The Madness of Crowds: How to Play Bonds, China, and Gold in 2012

Yes, I know that markets are irrational. I read Charles Mackay's 1841 classic, "Extraordinary Popular Delusions and the Madness of Crowds" long before it ever became fashionable. Even so, when you think about it, 2011 must set some kind of record. As investors, that means we need to decide whether this madness will continue in 2012 and which direction to take. Take the madness in the bond world, for instance. Long-term bonds of a country with an out-of-control budget deficit and

bonds

How Bain Capital Could Sink Mitt Romney

Poll leader Mitt Romney is getting slammed by opponents for the 15 years he spent at private equity firm Bain Capital. To hear the opposition tell it, Romney is not the job-creator he claims to be, but rather a greedy profiteer. After winning Iowa by a narrow 0.1% margin, Romney was the New Hampshire frontrunner by more than 10 percentage points, according to most polls. Romney's competitors, however, have edged slightly closer amidst increased scrutiny over the former Massachusetts

Mitt Romney

Forbes Misses the Mark, The Tech Sector Delivers Life Changing Gains

You can stop worrying about the financial crisis. I have a new way to help Washington make ends meet. If we were smart, we would just close the patent office. And why not? After all, according to some folks, all of the great inventions have already come and gone. So, if you thought we were still on the cusp of miraculous breakthroughs in technology that are going to change the world, think again. Despite what you may have been reading, the technology sector is actually positively

Tech Sector

What a Little-Known Market Tool Is Telling Us About U.S. Stocks in 2012

If you're a longtime investor, you're no doubt familiar with the Price/Earnings (P/E) ratio - a common measure for valuing the stock market. But you may not be as familiar with the more-obscure Earnings/Price (E/P) ratio, which some experts refer to as the "earnings yield" on stocks. If you're not familiar with the earnings yield, it's time to brush up. While it may be obscure, the E/P ratio is an important tool. It not only tells you stocks' value, it allows you to compare that value

U.S. stocks

How the U.S. National Debt Could Drain Your Savings

Now that Congress has allowed the U.S. national debt to grow bigger than the American economy, it won't be long until the American public suffers the consequences by losing most of its savings to inflation. Figures for last year show the national debt officially exceeded 100% of the nation's gross domestic product (GDP). According to government figures, the national debt stood at $15.23 trillion at the close of 2011, compared to a GDP of $15.18 trillion. "The 100% mark means that your

U.S. national debt

Can "Santorumnomics" Clinch Another Second Place Finish in the New Hampshire Primary?

The battle for second place is heating up ahead of the New Hampshire primary tomorrow (Tuesday), testing whether Rick Santorum and his "Santorumnomics" ideas supporting tax cuts and credits can win over voters. The former Pennsylvania senator snagged second place in the Iowa caucuses with 24.5% of the vote. Mitt Romney is expected to again capture first after winning Iowa by a narrow 0.1% margin. Another second-place finish for Santorum in the New Hampshire primary is far from a

New Hampshire primary

An Options Strategy That Will Save You Some Money

Whether you credit a Santa Claus rally, an early January Effect, or some other driving market force, there's no disputing the strong finish posted by stocks in 2011 - or the healthy 2012 opening advance added in the first week of January. To be specific, stocks - as measured by the Standard & Poor's 500 Index - rose from 1,204.00 at the close on Monday, Dec. 19, to 1,257.60 on Friday, Dec. 30, then jumped to 1,280.15 at midday yesterday (Monday), a gain of 6.32% in just three

options strategy