Posts by Andrew Gordon
For Companies, Spending Isn’t an Extravagance… It’s a Must
Answer me this: Why have Exxon Mobil and some of the other oil majors been spending more of their cash on share buybacks than on exploration and production?
Read MoreHow to Handle Economic Predictions
Economists really stink at predicting one of the most important events they track: Recessions. A recent study of 60 recessions that hit various countries in the 1990s found that only 3 percent of “consensus forecasts” (as they’re known in financial circles) made by groups of economists correctly predicted one of those recessions a year in advance. And when they did see one coming, they underestimated its severity by a long shot.
Read MoreBreaking Down an “Obvious” Rule of Investing
Invest in strong sectors. Avoid weak ones.
This seems obvious, yes? But too often, people invest in weak sectors and avoid strong ones. Here are some of the culprits behind this backward thinking:
Read MoreSimple Investing Works Best
The longer I invest, the more I realize that simple investing works best. The fewer rules you have, the better.
Simple investing should be a natural outgrowth of having more knowledge and a better understanding of how investing works. Your ability to pick out what’s truly important and what works for you is key.
Read MoreThe No-Risk Contrarian Way to Make a Lot of Money
Wilbur Ross is a multi-billionaire and legendary investor. He made his money by buying hated assets – like steel when nobody was touching it and Japanese banks when they were saddled with debt. (Sound familiar?)
Read MoreEven in a Bear Market, Not All Sectors Are Down
Last year, eight out of 10 major sectors went up. The reverse is happening this year. Eight out of the 10 are now in negative territory. Materials and energy are the only holdouts. Is either one worth investing in? Or are they just laggards that will be heading down any day now?
Read MoreAustralia: Where the Beer Is Great and the Bonds Are Better
Australian government bonds have never looked better than they do right now. And this is the perfect time to jump into them…
Read MoreWall Street’s Most Lethal Fallacies
Wall Street has its own less helpful spin on “live and learn.” It’s “read and retch.” So much of what we hear and read from so-called experts is simply garbage. Worst of all, it can lead to bad investment decisions.
Read MoreThe Sign We All Want to See
It doesn’t matter whether we’re in a recession or an economic slowdown (which falls just short of a recession). The main point is, the economy is hurting.
Read MoreWhy You Could Soon Be Rooting for Higher Gas Prices
Who’s making money off of high gas prices?
Read MoreThe Book on Bears and Bulls
"The average man doesn’t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think." – Jesse…
Read MoreWhat’s the Cure for a Sick Economy?
Take my word for it. We’re in a recession. It affects you as an investor and as a consumer. Is there anything that can bring us out of this economic tailspin? It’s time to ask a few questions about the leading candidates.
Read More