The Different Phases of a Bubble

I came across this interesting graph that shows the different phases of a bubble: Source Video: http://www.youtube.com/user/ancientsong#p/u/18/PHo1bqIp71E On a related note, Bloomberg BusinessWeek published an article on the real estate bubble in Vancouver, Canada. Click to Enlarge From the article: “The Olympics are over, and the Village is for sale. The complex in Vancouver, British …

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Lower Corporate Tax Payments Do Not Necessarily Benefit Shareholders

Japan’s corporate income tax rate of 40% is the highest among major developed countries according to the OECD. Surprisingly the U.S. has the next highest rate at 39%. 2010 Corporate Income Taxes of Select Countries: Source: Kan Seeks Cuts in Japan’s 40% Corporate Tax Rate, The Wall Street Journal The corporate rates in the Asian …

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Which is More Important: Job Security or Dividends?

When the property market crashed in the U.S., many experts argued that prices were 25% above trend. By mid-2008, property prices were down about 30% based on the Case-Shiller index. This meant that price correction was complete and the U.S. economy would go back to normal like it did eventually in Japan. However this did …

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U.S. Federal Redistribution of Income Continues to Climb

The U.S. has posted budget deficits year after year except for a brief period in the 1960s and between 1998 and 2001. One of the reasons for this shortfall is that the Federal government’s revenue is not keeping up with the rising expenditures. Among the expenditures, I believe the most important one to concentrate on …

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Consumer Spending Growth in Emerging Asia offers Investment Opportunities

The latest edition of Bloomberg Businessweek had an interesting article on the stock picking strategy followed by David Winters of the Wintergreen Fund(WGRNX). He focuses on companies that are poised to profit from the growing consumer spending in countries like India, China, Malaysia, Indonesia, etc. The following foreign stocks are some of the holdings of …

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