We are living in arguably the best time to purchase cash flowing rental property. Areas that didn’t pencil out 3-5 years ago are providing a steady monthly cash flow of $300-500 a month for savvy investors. Another factor to consider is that inflation is beginning to rear its ugly head in our everyday lives (just visit your nearest grocery store), and a 30-year fixed rate mortgage is a great way to hedge against the declining value of the dollar.

The idea is that somehow, by putting yourself in debt, you can save or make money. This is one of the prime reasons so many people got into trouble with their mortgage and credit a few years ago.

The Microsoft / Skype deal puts this concept in focus as detailed by an interesting WSJ read.   The biggest loser in this deal might be the US Government who got zero repatriation taxes on the offshore capital that was used to purchase Skype (an offshore company).  This could be a growing trend of companies looking to deploy offshore capital and avoid Uncle Sam.

Silver plunged something like 30% last week, then bounced for a few days – a text book dead cat bounce – and today dropped big again.  I expect this to continue at least to the $30 level and I still think silver could correct as low as $20.  I put a short term short trade on silver by using the ZSL and will take gains in that if it it plays out as I expect, then buy back into silver in the area around $20 (if it indeed goes as …

Tech bubble 2.0 baby. I’ve been watching Microsoft for some time. I actually want to own the stock because of it’s massive cash generating businesses and incredible bullet proof balance sheet.  With the lack of growth prospects however, you really have to enter the stock at an attractive entry point.  I’m seeking under $20 / share for an entry point.
In the news today is that Microsoft is buying Skype for $8.5 billion.  They definitely overpaid for the company based on Skype’s fundamentals, but it’s impossible to put a …

Why do Wall Street firms get bailed out by the government when the SHTF? Well, here’s at least part of the answer:

We’re rapidly approaching some important days and most likely important events.  Most of these events surround the Federal Reserve and the conclusion of the quantitative easing process we’re currently engaged in, usually referred to as QE2.
Interestingly, the rhetoric is what you need to watch, because if you pay attention closely to what people are saying on CNBC and other outlets, the tone has already shifted slightly.  This week we have seen weak housing numbers and weak job numbers (ADP report).  Coupled with this, we’ve seen a massive drop in commodities …

I’ve put up versions of thie chart before, but this one goes further back and is pretty clear. I continue to believe this is one of the most important charts for the coming few years. Ignore it at your peril.