I always get excited when changes to the Dow Jones Industrial Average (DJIA) occur.  I don’t really know why.  But you can bet I was glued to my TV when Chevron, Bank of America, and Kraft replaced Honeywell [HON: 35.72, 0.00 (0.00%)], Altria [MO: 17.35, 0.00 (0.00%)], and AIG [AIG: 1.65, 0.00 (0.00%)] last year.  This year, the DJIA has changed yet again, with Cisco [CSCO: 20.08, 0.00 (0.00%)] and Travelers [TRV: 44.04, 0.00 (0.00%)] replacing GM [GM: 0.00, 0.00 (0.00%)] and Citi [C: 3.41, 0.00 (0.00%)].

The DJIA is meant to reflect the overall US economy, comprised of a mix of the largest companies in different sectors.  The stock pickers over at News Corp. (who select the Dow 30 components) do a pretty decent job of creating

Every time the United States goes through a recession, the pundits all race to be the first to proclaim that “Buy and Hold” is dead.  I can’t watch a financial news channel or read a financial website without some mention of this proclamation.  Well I’m growing tired of it, and if it were up to me, I’d prohibit anyone else from making this point for the rest of 2009.

Buy and Hold is not dead, and I’m on a mission to prove it.  Buy and Hold has worked brilliantly for decades, and it will continue to do so in the future.  The stock you bought in 2007 is worth less now than what you bought it for?  Oh boohoo, go cry me a river…somewhere else.  The economy has peaks and troughs, and we’re in the middle of one of the more serious

Back when I was a young whipper snapper at Penn State, I always heard how, “this year is Japan’s year.”  Every year I went to school, it seemed like it was “Japan’s Year,” and though gains were made between 2003 and 2006, the Nikkei remains well below its high of 38,900 back in the early 90s.  The lost decade is turning into the lost generation, and at this rate we could be looking at the lost century.  But is 2009 finally Japan’s year?  Dare I be bullish about the Japanese stock market?  Well, it depends.If you invested in the S&P 500 in 1984, you’d be up a cool 500% in April 2009, even with the current economic woes.  And if you invested in the Nikkei?  You’d be down over 10%.  The Japanese economy has its good years and its bad years, but even in 2007 it wasn’t able to

Having spent a semester in Paris, I’ve seen first hand the gloriousness of French life. As a socialist utopia, there is extremely low unemployment, high wage growth, strong GDP growth, and virtually no homeless on the streets. Maintaining the high quality of life there requires such little work that citizens have nothing better to do with their time than throw parades, hailing their political leaders as brilliant masterminds who have created the most pristine living conditions in the world. Young French rioters burn buildings, break windows, and throw Molotov cocktails at police not in protest, but to cause destruction simply so they can clean up the mess, giving them something to do.

Obviously, this is not the case. France is anything but a Utopia, yet the same broken policies in France are the same policies that our politicians claim as the way

A couple of weeks ago, media outlets were abuzz over the revelation that Treasury Secretary Tim Geithner’s, ouster was publicly traded on InTrade.  For those of you unfamiliar with InTrade, it creates a market for buyers and sellers who bet on the probability of an event.  In this case, you can buy or sell shares based on whether or not you believe Secretary Geithner will leave his post by June 30, 2009.  

I’m not a big InTrade follower, but since Secretary Geithner plays such a prominent role in the health of the economy, I’ve watched this trade pretty closely.  At the time this article was written, this event was trading at $14.00.  Traders believe there is a very low probability of this event taking place.  However, if you choose to buy this event, and it takes place, you’ll earn a nice return.  Let’s take a look at several reasons to

A couple of weeks ago, media outlets were abuzz over the revelation that Treasury Secretary Tim Geithner’s, ouster was publicly traded on InTrade.  For those of you unfamiliar with InTrade, it creates a market for buyers and sellers who bet on the probability of an event.  In this case, you can buy or sell shares based on whether or not you believe Secretary Geithner will leave his post by June 30, 2009.  

I’m not a big InTrade follower, but since Secretary Geithner plays such a prominent role in the health of the economy, I’ve watched this trade pretty closely.  At the time this article was written, this event was trading at $14.00.  Traders believe there is a very low probability of this event taking place.  However, if you choose to buy this event, and it takes place, you’ll earn a nice return.  Let’s take a look at several reasons to

Last week President Obama unveiled his Make Housing Affordable Plan (MHA), which helps those homeowners who either owe more money than their house is worth, or who face imminent risk of default.   Those owing between 80% and 105% of their house may refinance at a low, fixed-rate for 15 or 30 years.  Those who are in default or face imminent default may be eligible to restructure their mortgages with interest rates as low as 2%, loan terms as long as 40 years, and principal reductions.  The government will also reduce principal by $1,000 per year if borrowers remain current on the lower, updated loan payment for up to five years. There are many who claim that this plan increases moral hazard, and will create an artificial bottom which will only temporarily delay the market from finding a true market bottom.  These