The uprising in Egypt is big news around the world these days, and while most Americans dismiss the news as just another event over there, the reality is that it is an important event and it represents something bigger.
First, let’s discuss the unrest over there. American media is quickly to describe the uprising as a political event where an oppressed people are finally attempting to throw off the chains of an oppressive government and usher in American style democracy. This is a very myopic point of view. …

We like to make big deals of these levels in the Dow.  We crossed 12,000.  Does it matter?  Well, first, I’d say that the Dow is sort of archaic and the S&P 500 is a better index.  Regardless, though, if you’re a bull, you’re cheering the new level.  The reality though is that 90% of these bulls only care about what the stock market does this year.  This is a terrible way to invest.  Ignore the short term cheering, and focus on the fundamentals, and the big trends that you …

Investing in the stock market is tricky business.  With the manner in which the markets and investing is covered by the media, it makes it quite confusing.  Business media like the Wall Street Journal or CNBC on TV is all about covering what is happening now.  It’s very hard to have and keep a long-term perspective with the way the media covers investing.
Moreover, it seems the alternative is to be completely ignorant to economic reality and events, ignore everything with regards to stocks and the economy, and let the experts …

The merging of politics and economics should be avoided as much as possible.  I would assume however that most democracies end up merging them way too much.  Remember the following on democracies:

“A democracy cannot exist as a permanent form of government.  It can only exist until the voters discover they can vote themselves largess from the public treasury.
“From that moment on, the majority always votes for the candidates promising them the most benefits from the public treasury, with the result that a democracy always collapses over loose fiscal policy, always …

Living in the information age brings a lot of perks. Not only do we have access to plenty of information about investing, finance, accounting, economics, and business (stuff they could have only dreamed about just a few decades ago), we also have the ability to easily launch relatively cheap businesses online.
Dropshipping businesses, information products, for-profit blogs — these are all examples of online businesses that are common and popular. They can be lucrative, and rarely cost as much as a traditional brick-and-mortar business to start up.
As has been talked about …

“I believe that banking institutions are more dangerous to our liberties than standing armies..  If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property – until their children wake-up homeless on the continent their fathers conquered.”
- Thomas Jefferson, 1802

I’m reading Timothy Ferriss’ latest book, The Four Hour Body.  I don’t really have a special desire to read a book on health, nutrition or exercise, but I like Ferriss’ style and unique ideas on subjects.  I read his first book Four Hour Work Week and I liked it – not because I liked everything in it, but because I liked the way he challenged consensus views on a number of subjects like finances, retirement, careers, entrepreneurship, etc.  While lots of it might be irrelevant, it is interesting because it …

It’s truly amazing how impactful the stock market can be on emotion and behavior.  Unfortunately, our leaders realize this and they are willing to sacrifice a currency in order to inflate asset prices and make people feel better versus making them actually better off.
What am I talking about?  I’m talking about the wealth effect.  When stocks are higher, people feel wealthier and thus they spend money.  If you subscribe to the economic theory that consumption is what drives an economy, well, then this would be a good thing.
Yesterday was MLK …