January 28, 2010
– Comments (9)
U.S. consumers defaulted on store-branded credit cards at near-record levels during the holiday shopping season, with 2010 likely to bring more of the same trend, according to Fitch Ratings.
This one is just creepy:
Zero Hedge discussed a month ago the disastrous prospects of what would happen if the new proposal contemplated by the SEC, which would allow the suspension of redemptions from Money Market Funds, were to pass. Well, in a nearly unanimous vote, Money Market Funds now have the ability to suspend redemptions, courtesy of the SEC's just passed 4-1 vote. This explains the negative rate on bills: at this point, should there be another meltdown, money market investors will not, repeat not, be able to withdraw their money purely on the whim of Mary Schapiro. As the SEC noted: "We understand that suspending redemptions may impose hardships on investors who rely on their ability to redeem shares." Too bad investors' hardships considerations ended up being completely irrelevant.
I would love to know what Fools think of my latest proposal:
I am going to buy NUE stock ... on principle.
It's my statement of hope for sustainable economic recovery in the face of broad indications to the contrary.
I am prepared to remain underwater on that investment for a protracted period if the economic trajectory plays out as I fear it may. Meanwhile, if I am wrong and recovery takes hold, at least I'll have one stock holding that represents bullish expectations for the U.S. economy. In addition to being something of a hedge, it will be a reminder of what I hope this country can accomplish.
I've heard of avoiding stocks on principle, but has anyone out there ever bought a stock on principle? If you have, I would love to hear about it.
Fool on, but please be careful out there.
You've been busy!
Have I ever bought a stock strictly on principle? No. My principles do however make for a large part of my investing equation. After I have looked at all the numbers and read all the reports I can stomach I ask myself if I believe I can buy the company and admit to it. If the answer is yes then it is a buy.
I'll have to take some time later and look at the links you provided.
I like the cartoon for comment #1. I think politicians should have to wear a suit just like that if they take money from corporations, foreign or domestic. They should charge for add space like NASCAR teams do for sponsors.
Cato, Puppet of China Green Agriculture and Silver Weaton. :)
Wow, some amazing bargains in gold and silver mining land this morning.
I've begun moving heavily into the silver juniors. Anyone else buying this week? I am of course saving some dry powder for the chance we see $1,000 gold as noted several times during this correction. But at 67:1, it's hard to ignore this gold:silver ratio!
This correction has been a gift ... of course, it doesn't hurt that I saw it coming. :)
I've been nibbling here and there. Due to uncertainty (and experience) I don't have that "all-in" feeling just yet. So I set up auto-investing for my 3 precious metal mining stocks and I will keep that going until the prices take off again.
I agree, mining stock are undervalued. I sold ABX @ 35.50/share back in Sept when gold was at $955/ounce. It was at ~$34/share and gold is at $1100ish/ounce.
I've bought in to ABX.