Savings Rate
The savings rate measures income minus consumption - nothing more. It ignores capital gains, realized or unrealized, on investments, homes, businesses or anything else. It also ignores any buildup in the value of pensions.
If last week’s downturn makes you wonder if you should sell all your stocks, keep in mind that the world economy and stock market stand to gain from three special factors, just like McKesson.
Starting in the early 1990s, I’ve regularly pointed out that these special factors are often overlooked or under-estimated. They are:
1. The baby boomers remain in the prime …read more »
Here are three key rules you’ll need to follow to invest safely and successfully in 2007.
1. Make sure you have substantial U.S. market exposure — 20% to 30% of your equity investments, if not more.
Some Canadian investors have avoided the U.S. market recently. They worry that Americans are spending too heavily on consumer goods, especially with borrowed money, while neglecting …read more »
