Thursday, April 10, 2008

Waiting ...

Some interesting items were in this morning's news.

1. The Red Chinese yuan ticked under 7 per $, the first time in many years.
2. The WSJ had an article about container shortages in much of the US as export growth requires large changes in how those big steel boxes are managed in the US.
3. Copper hit $4/oz.
4. Oil demand in the world markets is high, which makes the US pay more for its imports. US consumption is falling slowly as consumers adjust behavior.
5. Costco shows excellent store sales.

None of these facts are consistent with recessions - but they do imply some structural changes in the US to a more balanced economy, viz. balanced between domestic demand and exports. This is good for the US long term. Other nations in the world must adjust conversely, viz, rely less on US demand and more on internal and regional consumer demand.

I made my SEP-IRA contributions to clean up the 2007 amounts and the initial 1/2 for 2008. I really can't complete those until my taxes are almost done so I know reliably how much self-employment income my businesses generate. The majority of the money went to US stocks via the Vanguard Total Stock Market Fund. Some will go into a new brokerage account at Vanguard I'll open within the SEP-IRA plan. I'm doing this to be able to buy gold & silver on the stock market via the GLD and SLV ETFs without taxes. Doing that in my regular brokerage accounts would subject me to the higher 28% taxes on those asset classes even for long term gains. Another reason for doing this is I really don't want to buy so much physical gold & silver again. I want more flexibility. So I will limit my physical gold & silver holdings to core, "survival" amounts.

One can manage taxes quite well with parallel fund investments in IRA-type accounts and regular accounts, while keeping asset classes in balance. I'll write more about this later.

For now I am waiting and looking for a few good stocks to add to my Alpha Fund, which is about 150% long.

PS: DuPont (DD) guides Q1 EPS up. WMT raises Q1 guidance substamtially.
PPS: I gave Mrs. B some gold money to put into her Sky Fund ... she bought some US stocks with it near the close yesterday.

Words of the Day

"Abstentious" - adjective [$10] - this is an "aeiou" word with all five vowels in order.
Abstentious means a person or body who tends toward abstention in acts or habit.
Sentence: Congress seems now to have morphed into an abstentious institution for any decisions other than funding earmarks, aka bribes. The latest efforts by Speaker Pelosi to violate agreements to hold votes on free trade treaties evinces her inherent dishonesty.

"Abstemious" - adjective [$10] - this is also an "aeiou" word.
Abstemious means (of a person, habit, etc.) moderate, not self-indulgent, esp. in eating and drinking.
Sentence: Some persons are unable to lead abstemious lives as they simply must completely abstain and avoid any alcohol as they are unable to control their actions after even small amounts. Self-help organizations can help them be abstentious towards alcohol.

48 comments:

Bud said...

sep-IRA max contribution is 40k??

how do you have a sep-IRA?....i looked into it.....i thought bein a pure trader/investor i cudn't

Bud said...

i support the president on colombia free trade

both barack and hillary are lying thru their teeth when they say they against it (and Nafta)


i agree with the republicans on taxes and free trade......if dems reject hillary......GOP not lookin that bad to me



mac is back !! mac is back !!


die obama die !!!!!!!!!!!

Bud said...

Dear Sal,


Thank you for everything you have done over the past few weeks to support Hillary and our campaign. Your contributions, your volunteering, your spirited messages of support have all helped to keep our campaign moving forward.

Now we are approaching the final days before the Pennsylvania primary, and we need Hillary's best supporters on the ground to help us win big on April 22.

Hillary is working hard to win every day, but she can't speak personally to every voter in Pennsylvania. She needs her best surrogates -- people just like you -- knocking on doors and helping her spread the message to Pennsylvania voters.

Click here to sign up to volunteer in Pennsylvania.

Volunteers are already showing up from every corner of the country to help Hillary win her next big race in Pennsylvania.

They're making phone calls, working in our field offices, and helping out at events where Hillary speaks.

They're doing everything they can to make sure that Hillary wins on April 22 -- and they need your help.

Click here to sign up to travel to Pennsylvania and help Hillary win.

Everything you have done and everything you do is so important to our plan for victory. Thank you for all your help.

Sincerely,

Terry McAuliffe
Chairman, Hillary Clinton for President

Spin-em said...

Masters winner pick 3....If you take Tiger..thats all ya get..lol

Ogilvy,Goosen,Couples

Bud said...

phil,ogilvy,sergio


lomgshot: aaron baddely

i'd luv to see freddie do well

Bud said...

i also like padraig harrington

uh......you said 3

Spin-em said...

Tiger on the moon..if thats not jumpin the shark for KO...lol

mfl59 said...

vijay, bud's boy sabbatini, stricker...

darkhorse: tripp kuehne

Spin-em said...

Lets see if Bunkerman can pick 3 in a sentence.....(double entendre $10)..lool

mfl59 said...

It can be said that the Masters Tournament brings together an amalgamation ($10) of great champions, past and present.

Bunkerman said...

wierd ... couldn't access comments for awhile ... site seemed bogged down.

Bunkerman said...

SEP-IRA is smaller of 25% of self-employment income or $45000 for 2007. Not sure what 2008 max is, yet.

To do it as a trader/investor you would have to claim self-employment income from trading and pay social security & medicre tax on that money. Some create LLCs and funnel fees through those.

I don't think the number work if one has to pay the SS+Medicare.

I have non-trading businesses that generate SE profits, hence use that money.

Bunkerman said...

"pick 3 in a sentence" uh don't understand ???

Bunkerman said...

good jobless claim number.

Bud said...

BIDU ops expo trade workin

mfl59 said...

Bunkerman what are we looking for from GE tomorrow am? Have they preannounced anything?

Bunkerman said...

they didn't pre-announce, but Immelt was really bullish at some conference in March.

I expect a good quarter.

Bunkerman said...

that stock really doesn't jump like a frog on a hot Q, tho. Huge company - takes a lot of real buyers to move it.

Frosty said...

Dear Sal

the W surge in iraq is making fine progress...we can't let the facts see the light of day...mo money means mo lies and mo smoke screens...help us keep america in the dark...stupid is as stupid does...mo money mo money mo money.

Spin-em said...

STEP OFF GEORGE....LEAVE THE COMIC BOOK

mern said...

low and outside, ball 1.

tiger teeing off in 12 minutes

Frosty said...

no one has Tiger..I'll take him...Bud you hate black golfer too?

mern said...

tony had no right to me mad at costanza. he made sandwhiches for gods sake!

Frosty said...

step off mern, just step off.

Bud said...

listen frosty

just cuz BIDU worked doesn't mean we are friends.....we never will be friends

don't address me in your posts......it makes me puke

Bud said...

it's not in my nature to root for someone like tiger

he's gonna make 1B and win every tournament

i root for underdogs......it was sweet to see zach and cabrera win last year......those wins change their lives


same reason i don't root for the yankees, cowboys, lakers etc.....

mfl59 said...

Uhh Bud, aren't you a Red Sox fan sir?


strike one indeed

Bunkerman said...

got back from Costco ... lots of cheap stuff there.

Smoked salmon, especially.

Hmmm I wonder if frosty has a smokehouse ?

Bud said...

Costco??

gimme a f'ng break

you don't shop at costco

no one who contributes 10k for a political campaign goes to costco


don't try to pull that 'common man' act with me

Spin-em said...

interesting Bud uses first name for whitey

"zach" white

cabrera other

Bunkerman said...

Uh ... Bud ... being generous does not imply I am stupid.

I shop at Costco & wear pants from Wal-Mart.

A person who earned his money values it.

Bunkerman said...

uh ... well, except when wearing custom made trousers with a suit, etc. ;-)

Frosty said...

salmon fishing saturday on the upper columbia...spring kings...guided trip, $135 all in for the day...no inflation.

smoke house, no...use a couple of electric smokers....big cheif brand name...works great.

Frosty said...

Bud...if I give you a couple more stock picks will you be my friend?

mern said...

can tiger ever be considered the favorite in augusta ga?

dont they still have segragated bathrooms?

bud u must be a HUGGGGGGGE philly fan.

that poor blue collar city hasnt seen a ring since the last time bill played stinky pinky with chelsea.

high and tight, take first base.

lol

Spin-em said...

PERSONAL FOUL..15 YARD PENALTY ...BEING A GROSSBURGER....LOSS OF DOWN

Frosty said...

Bunkerman...Ben's last grade a B...the best term standing by far...by giving the B, you now agree that the touch and go is off the table or is that part of this terms grade?

the lord of the fly's at GS: crisis 75% behind us...is that about right?

Bunkerman said...

still on the table, frosty; an A would have been direct buys of FNMA+Freddie mortgages.

Ben kept touch & go on the table.

Should know by mid-May if tires burst on the touch.

Frosty said...

interesting...the tape seems to be setting up that way as well...your spiddy patten is looking good, but those darn fins.

Bud said...

i actually like sabatinni alot now

he doesn't give a F about kissin tigers's or the golf media's ass


and he's south african


white is right !!!!!!

Frosty said...

Bud...should I give you five stock picks will you be my friend?

Bud said...

frosty reminds me of this kid that used to think he was real tuff in middle school....i must have been 11 or 12

he was bigger than me and he used to tease me and try to push me around

and 1 day he challenged me to a fight....well......let's just say he never even dare look my way after that day

mfl59 said...

Yes I hear there are some real nasty fights at Manhattan prep schools....lmaooooooooooooooo

Bud said...

lmaooooooooooooooooo


some of those kids were very ruff......no joke

mern said...

speaking of funny set the DVR or tivo to comedy central at 1030 tonight.

lil bush is hysterical!!!!!!!!! whether u r a donkey or elephant that show is awesome.

i was dying last week: lil bush, chenney, rummy and condi were playing "katrina". lil chenney comes in like a hurricane, tearing up the white house. george sr walks in and is like "WHATS THIS?"

lil chenney is trying to poop on a couch and utters "ra-ra-ra-ra, hold on a minute....... CROWNING.....ra-ra-ra-ra...... AH THATS THE TICKET, ra-ra-ra"

LMAOOOOOOOOOOOOOOOO!!!!!!!

Spin-em said...

Amen Corner ch 704 pretty cool

Spin-em said...

you only see greens like this on the $40 courses........

Bud said...

ch 704?? come on spin.....ch709 amen corner in hi-def

sheeeeesh


28bux a round

lmaooooooooooooooooo