Stuffing money in a mattress literally!
From the “why didn’t I think of that file” here is an interesting story on Bloomberg TV about a mattress maker in Spain who is tapping into today’s mistrust of the banking system by selling a mattress with a built in safe.
Falling Markets are a good thing!
Stocks, bonds, REITs, commodities and even good old bonds are falling like nine pins lately. The Wall Street Journal’s Jason Zweig says that if you are going to be accumulating assets for the next little while, lower asset prices are good for you (though it might not seem that way).
Things to avoid at garage sales
If you are going to shop at garage sales this summer, Reader’s Digest offers a list of items to avoid. It seems to me that avoiding items on the list such as bike helmets are just common sense.
Frugal Disney World
A wag said that the true magic of Disney is the amount of money they can extract from your wallet everyday. Still, it looks like Canadian Money Forum members have tips on how to save money at Disney World.
No Irrational Exuberance
In an interview with CNBC’s Squawk Box, former US Fed Chair Alan Greenspan says that stock markets are “significantly undervalued” based on equity risk premiums (here’s a good explanation of ERP).
Why ERP should be used with care
In a blog post, Aswath Damodaran, a Professor of Finance, pokes holes in Greenspan’s comments and points out that historically an increase in interest rates has tended to reduce the equity risk premium (the return from stocks is risk-free rate plus ERP), so stock prices may not be so undervalued after all.
Bond Bear, Stock Bull
Fortune magazine explained why Greenspan’s comments that bond yields are going to rise and stocks are a bargain based on current equity risk premiums makes little sense.
I’d like to be a couch potato, but…
Michael James says that while many investors are convinced by the arguments in favour of indexing, true couch potatoes are rare.
Blogs as a business
Million Dollar Journey shares some insights into how much it costs to start and maintain a blog or website.
The Power of Denial
Here’s something completely different: CBC’s The Current ran a story on an intriguing theory that the thing that is so special about humans is… denial. That would explain a lot of why so many people still believe in active management (sorry, couldn’t resist it).