The RSI and Why It Matters

By dubayns on 5/13/09 8:06pm
Add Comment

One of the fist things you will learn in any finance class is that the RSI, or Relative Strength Index is your friend when it comes to evaluating the stock market on the whole.  The RSI is a ratio, or comparison between the high closing value of "x" number of days and the low closing value of "x" number of days of the stock market or particular stock or index.  The RSI attempts to determine when and identify where an overbought or oversold condition exists, or more simply, when the stock market has been over inflated or is under inflated.  This information is useful to investors because it allows them a small glimpse into the mechanics of a market and can be used for just one week or compared over a large amount of time like a year or longer.

 

While the RSI is a handy tool when it is used as a stock analysis package, it should be remembered that if a stock or index's value suddenly shifts up or down, it's tough to really use the RSI on its own to analyze the values until the measurements are allowed some time to average out over time.  That's why it's best to use the RSI as a trading tool, not an all out deciding factor.

 

Read more >

Fuel for the Recovery: A Closer Look at Sector-Driven Economic Growth

By dubayns on 5/13/09 8:03pm
Add Comment

With the possible bottom of the economic crisis upon us, many economists and investors are wondering which sector or sectors will carry the US out of the recession and leap to the forefront of an economic recovery.  Guessing correctly could pay off big in the next few years and possibly for a decade or two to come.  Here's a past look at what sectors have really driven the US economy out of slowdowns and recessions in the past.

 

In the 1950's, President Eisenhower decided to start work on a project that is still going on today, the building of the highway infrastructure.  This infrastructure has helped immensely in carrying goods and people from place to place more efficiently and effectively.  It's become a national treasure and priceless US asset.  The US highway system also paved the way (no pun intended) for the US auto industry to flourish.  People were now able to travel more cheaply and easily by car, and the idea of every family owning an automobile was born.  Unfortunately, this massive buildup of fossil-fuel burning technology also fueled the rise of the influence of oil, which is still felt today.

 

Read more >

Pennies: More Than Face Value

By dubayns on 4/30/09 11:34pm
Add Comment

Not too many people know that US pennies minted from 1909 to 1981 are 95% copper.  The variety minted after 1981 is mostly zinc, as are this year’s pennies.  Not many people ponder the significance of this fact, but it is significant indeed.  A 95% copper penny means that, given today’s copper prices, those pennies are worth more in metal content than they are at face value.

 

Read more >

Making Planning for Retirement Easier

By dubayns on 4/30/09 11:07pm
Add Comment

Most people under the age of 30 don’t really spend too much of their day thinking about retirement.  For many of them it seems like they’ll never reach retirement age, it’s just not something they can even relate to.  Therefore it’s no wonder that many of these same people, and even some that are far older, have never really sat down to make a savings or investment plan for their retirement.  Well if you’re one of those people, you should take the first step in your retirement planning and check out www.simplifi.com.

 

Read more >

Circulating US and Even Canadian Coins Can Net Big Bucks

By dubayns on 4/30/09 10:45pm
Add Comment

Some people have a hobby of searching rolls and rolls of coins for 40% or 90% silver coinage that is no longer being minted.  They call themselves Coin Roll Hunters, and their activity is called coin roll hunting, or CRHing.  But it’s not just some US coins that have silver in them.  Many Canadian coins do as well.

 

Read more >

When a Recession Turns Into a Depression

By dubayns on 4/30/09 10:27pm
Add Comment

The idea that we may soon be or are already experiencing a depression is foreign to many people.  When I hear the word “depression” I think of the Great Depression that hit the US back in the 1930’s.  Of course other countries have had even worse depressions over the past few hundred years but since I’m a US citizen, our depression was the one that got taught to me in school.  But with all this talk about a recession I often wonder, when does a recession turn into a depression?  The unemployment numbers are pointing towards a depression rather than a recession.

 

Read more >

Platinum at $2000 an Ounce?

By dubayns on 4/30/09 1:17am
Add Comment

 

Six months ago platinum was hovering just below gold in value.  The time was right to buy then, just as right now, the time has once again come to jump on the platinum train and reap some rewards in this dismal economic environment.  Platinum today is at about $1200 per ounce, but many factors including mine closures and production declines.  The white metal is primed for a real recovery, years before an earnest economic recovery will occur anywhere in the world.

 

Read more >

Precious Metals Spot Premiums On Their Way Down

By dubayns on 4/30/09 1:15am
Add Comment

 

Across the country the general sentiment is that dealers have begun to lower their spot premiums in light of the fact that more and more individuals are offloading their gold and silver stockpiles.  Silver especially has seen a major up-tick in private party to dealer sales, and spot premiums are coming down, albeit very slightly, but they are certainly on their way down.  All of the incoming silver is beginning to flood some dealers’ inventories and if forcing them to question whether people are deciding that now is the time to get out of the metal or if something bigger is happening. 

 

Read more >

Recession Related Investment Opportunities

By dubayns on 4/30/09 1:13am
Add Comment

The current global economic downturn is nothing more than a reorganization of wealth.  Whether or not you agree with how and why it is being reorganized is up to you, but there are some ways to really benefit financially in this time of bad news and gloomy profit reports.  Not all investment transactions occur on a computer screen.  Some people collect antiques and build stockpiles of precious metals and other valuable goods.  Right now is one of the best times to get these items at great prices because so many people are looking to turn their possessions into quick cash and are unwilling to do the research and footwork to figure out what their collectibles and tangible investments are really worth.

 

Read more >

China and the G7

By dubayns on 4/30/09 1:01am
Add Comment

 

The news from the G7 summit that China plans to completely offload US dollars is not something to be taken lightly.  US Dollar value would slump significantly against a background where China is buying more Euros and gold to back up its currency.  There has even been talk to hat China will shift to the multi-currency SDR form of reserve and push economies around the world to follow suit.  This news comes as no surprise to those of us who followed the G20 summit just a few short weeks ago.

 

This news about the G7 talks, coupled with the fact that China has announced it would certainly buy more Euros has European nations consumed with worry.  A move like this would send the US dollar downward and the Euro upward, creating and even worse situation in Europe as US importers would be able to buy far less European exports.  A blunt shift from the USD to Euros or even SDR's would create an even larger world economic tremor than has been seen in the past nine months with the current recession.

 

Read more >