I hope you had a wonderful Memorial Day. A very special person sent me information on the history of the song Taps which is shown at the bottom. This week a new word was created, Zuckered which is not a very flattering word. The first paragraph is from Vanguard.
Vanguard
Be it ever so humble, the current housing market recovery may have a foundation. Although the numbers are still low by historical standards, reports on existing-home and new-home sales were both encouraging in a light week for economic news. There was also a bump in durable-goods orders, largely because of a rise in orders for transportation equipment. For the week ended May 25, the S&P 500 Index rose 1.7% to 1,318 (for a year-to-date total return—including price change plus dividends—of about 5.70%). The yield on the 10-year U.S. Treasury note rose 4 basis points to 1.75% (for a year-to-date decrease of 14 basis points).
Zuckered
This week the word Zuckered was created, not a very good word. This week was the first full week of trading for Facebook. During the week this stock went from about $38 to about $31 and then recovered to about $32. So in the 6 days of trading the stock went from about $42 to about $32. So you can imagine that some people are not very happy. Three investors are so upset they filed a lawsuit against Morgan Stanley, Facebook, and Mark Zuckerberg.
Mark Zuckerberg is the CEO of Facebook. So the word comes from first part of the last name. It comes from investors who bought the hype and at the end realized that reality was far from the hype especially when some analysts put the value of the stock between $13 and $22.
So what is the thing to learn from this word? Buy the facts and sell the hype.
History of the Song Taps
We in the United States have all heard the haunting song, 'Taps...' It's the song that gives us the lump in our throats and usually tears in our eyes.
Reportedly, it all began in 1862 during the Civil War, when Union Army Captain Robert Elli was with his men near Harrison's Landing in Virginia. The Confederate Army was on the other side of the narrow strip of land.
During the night, Captain Elli heard the moans of a soldier who lay severely wounded on the field. Not knowing if it was a Union or Confederate soldier, the Captain decided to risk his life and bring the stricken man back for medical attention. Crawling on his stomach through the gunfire, the Captain reached the stricken soldier and began pulling him toward his encampment..
When the Captain finally reached his own lines, he discovered it was actually a Confederate soldier, but the soldier was dead. The Captain lit a lantern and suddenly caught his breath and went numb with shock. In the dim light, he saw the face of the soldier. It was his own son. The boy had been studying music in the South when the war broke out. Without telling his father, the boy enlisted in the Confederate Army.
The following morning, heartbroken, the father asked permission of his superiors to give his son a full military burial, despite his enemy status. His request was only partially granted.
The Captain had asked if he could have a group of Army band members play a funeral dirge for his son at the funeral. The request was turned down since the soldier was a Confederate. But, out of respect for the father, they did say they could give him only one musician.
The Captain chose a bugler. He asked the bugler to play a series of musical notes
he had found on a piece of paper in the pocket of the dead youth's uniform. This wish was granted.
The haunting melody, we now know as 'Taps'used at military funerals was born. The words are:
Day is done. Gone the sun.
From the lakes From the hills.
From the sky. All is well. Safely rest.
God is nigh.
Fading light. Dims the sight.
And a star. Gems the sky.
Gleaming bright. From afar.
Drawing nigh. Falls the night.
Thanks and praise. For our days.
Neath the sun. Neath the stars.
Neath the sky
As we go. This we know.
God is nigh
Monday, May 28, 2012
Sunday, May 20, 2012
Facebook and General Motors
This week Facebook became a public company with a lot of hype and Berkshire Hathaway bought 10 million shares of General Motors. This represents different styles of investments. Also, at the end is some quotes on leisure for your enjoyment.
Vanguard
The economic recovery continued to move at a slow and sporadic pace; however, longer-term risks seem to be casting shadows on its durability. For the first time in seven months, the Conference Board's index of leading economic indicators did not show growth. The Federal Reserve revealed that some of its members are concerned about long-term obstacles in the form of upcoming fiscal negotiations in the United States and the financial struggles in Europe. The latest reports showed encouraging signs for the housing market and the manufacturing sector, while consumers slowed their retail purchases. For the week ended May 18, the S&P 500 Index fell 4.3% to 1,295 (for a year-to-date total return—including price change plus dividends—of about 3.86%). The yield on the 10-year U.S. Treasury note fell 13 basis points to 1.71% (for a year-to-date decrease of 18 basis points).
Facebook and General Motors
Facebook went public last Friday with much applause and hype. An initial list of investors purchased the shares at $38.00 per share. When trading started when the normal investor could purchase the price was $42. By the end of the day the price was just above $38 per share. The type of investor who would purchase this stock would be momentum investors who believe that the price is on a short term upswing or someone who invest on the potential for future growth instead of the current financial condition. It is interesting that this past week General Motors announced it would stop buying ads on Facebook.
Berkshire Hathaway purchased shares of General Motors. This is an example of a value investor who looks at the financial condition of the company relative to other companies to find the best value for the longer term. This is the opposite type of investor than someone who invests in Facebook.
Each investor needs to know what type they want to pursue. I prefer to have a combination of both as each will do well in certain investing environments. I think that Berkshire Hathaway made the better investment.
Thoughts on Leisure
If people concentrated on the really important things in life, there'd be a shortage of fishing poles.
Doug Larson
The trouble with retirement is that you never get a day off.
Abe Lemons
Middle age is when work is a lot less fun and fun is a lot more work.
Author Unknown
Rest is not idleness, and to lie sometimes on the grass under trees on a summer's day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time.
J. Lubbock
Golf is played by twenty million mature American men whose wives think they are out having fun.
Jim Bishop
Don't play too much golf. Two rounds a day are plenty.
Harry Vardon
There's never enough time to do all the nothing you want.
Bill Watterson, Calvin and Hobbes
Our life, exempt from public haunt, finds tongues in trees, books in the running brooks, sermons in stones, and good in everything.
William Shakespeare
Choose a work that you love and you won't have to work another day.
Confucius
Vanguard
The economic recovery continued to move at a slow and sporadic pace; however, longer-term risks seem to be casting shadows on its durability. For the first time in seven months, the Conference Board's index of leading economic indicators did not show growth. The Federal Reserve revealed that some of its members are concerned about long-term obstacles in the form of upcoming fiscal negotiations in the United States and the financial struggles in Europe. The latest reports showed encouraging signs for the housing market and the manufacturing sector, while consumers slowed their retail purchases. For the week ended May 18, the S&P 500 Index fell 4.3% to 1,295 (for a year-to-date total return—including price change plus dividends—of about 3.86%). The yield on the 10-year U.S. Treasury note fell 13 basis points to 1.71% (for a year-to-date decrease of 18 basis points).
Facebook and General Motors
Facebook went public last Friday with much applause and hype. An initial list of investors purchased the shares at $38.00 per share. When trading started when the normal investor could purchase the price was $42. By the end of the day the price was just above $38 per share. The type of investor who would purchase this stock would be momentum investors who believe that the price is on a short term upswing or someone who invest on the potential for future growth instead of the current financial condition. It is interesting that this past week General Motors announced it would stop buying ads on Facebook.
Berkshire Hathaway purchased shares of General Motors. This is an example of a value investor who looks at the financial condition of the company relative to other companies to find the best value for the longer term. This is the opposite type of investor than someone who invests in Facebook.
Each investor needs to know what type they want to pursue. I prefer to have a combination of both as each will do well in certain investing environments. I think that Berkshire Hathaway made the better investment.
Thoughts on Leisure
If people concentrated on the really important things in life, there'd be a shortage of fishing poles.
Doug Larson
The trouble with retirement is that you never get a day off.
Abe Lemons
Middle age is when work is a lot less fun and fun is a lot more work.
Author Unknown
Rest is not idleness, and to lie sometimes on the grass under trees on a summer's day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time.
J. Lubbock
Golf is played by twenty million mature American men whose wives think they are out having fun.
Jim Bishop
Don't play too much golf. Two rounds a day are plenty.
Harry Vardon
There's never enough time to do all the nothing you want.
Bill Watterson, Calvin and Hobbes
Our life, exempt from public haunt, finds tongues in trees, books in the running brooks, sermons in stones, and good in everything.
William Shakespeare
Choose a work that you love and you won't have to work another day.
Confucius
Sunday, May 13, 2012
Drifting and Mother's Day
Happy Mother's Day to the most important people of the world. At the end is some information about Mother's Day around the world for your enjoument. An example of the importance of being a mother can be seen when an athlete is on camera he or she says hi mom, seldom if every hi dad. First is the usual information from Vanguard.
Vanguard
Consumers borrowed much more than expected in March, as both student and car loans shot up and credit card borrowing rose after declining in January and February. Analysts are unsure whether this news signals a real pickup in demand or just a need to lean more on credit, as job and income growth remain weak. For the week ended May 11, the S&P 500 Index declined 1.1% to 1,353 (for a year-to-date total return—including price change plus dividends—of about 8.4%). The yield on the 10-year U.S. Treasury note fell 7 basis points to 1.84% (for a year-to-date decrease of 5 basis points).
Drifting
The best way to describe stock, bond, and commodity markets is drifting like a boat going up and down with the current without power either forward or backward. The economic data shows both positives and negatives with the effect of things going up and down without much energy. With a growing economy the 10 year U.S. Treasury interest rates should be going up rather than down.
The bottom line is expect things to continue to drift. Please do not caught up in the day to day noise.
Mother's Day International history and traditions - Wikipedia
In most countries, Mother's Day is a recent observance derived from the holiday as it has evolved in the United States. When it was adopted by other countries and cultures, it was given different meanings, associated to different events (religious, historical or legendary), and celebrated on a different date or dates.
Some countries already had existing celebrations honoring motherhood, and their celebrations have adopted several external characteristics from the American holiday, like giving carnations and other presents to your own mother.
The extent of the celebrations varies greatly. In some countries, it is potentially offensive to one's mother not to mark Mother's Day. In others, it is a little-known festival celebrated mainly by immigrants, or covered by the media as a taste of foreign culture.[citation needed]
In the Roman Catholic Church, the holiday is strongly associated with reverencing the Virgin Mary. In many Catholic homes, families have a special shrine devoted to the Blessed Virgin Mary. In many Eastern Catholic and Eastern Orthodox Churches, a special prayer service is held in honor of the Theotokos Virgin Mary.
In Hindu tradition it is called "Mata Tirtha Aunshi" or "Mother Pilgrimage fortnight", and it is celebrated in countries with Hindu population, especially in Nepal. It is celebrated on the new moon day in the month of Baisakh, i.e., April/May. This holiday is based in Hindu religion and it pre-dates the creation of the Western-inspired holiday by at least a few centuries.[citation needed]
Vanguard
Consumers borrowed much more than expected in March, as both student and car loans shot up and credit card borrowing rose after declining in January and February. Analysts are unsure whether this news signals a real pickup in demand or just a need to lean more on credit, as job and income growth remain weak. For the week ended May 11, the S&P 500 Index declined 1.1% to 1,353 (for a year-to-date total return—including price change plus dividends—of about 8.4%). The yield on the 10-year U.S. Treasury note fell 7 basis points to 1.84% (for a year-to-date decrease of 5 basis points).
Drifting
The best way to describe stock, bond, and commodity markets is drifting like a boat going up and down with the current without power either forward or backward. The economic data shows both positives and negatives with the effect of things going up and down without much energy. With a growing economy the 10 year U.S. Treasury interest rates should be going up rather than down.
The bottom line is expect things to continue to drift. Please do not caught up in the day to day noise.
Mother's Day International history and traditions - Wikipedia
In most countries, Mother's Day is a recent observance derived from the holiday as it has evolved in the United States. When it was adopted by other countries and cultures, it was given different meanings, associated to different events (religious, historical or legendary), and celebrated on a different date or dates.
Some countries already had existing celebrations honoring motherhood, and their celebrations have adopted several external characteristics from the American holiday, like giving carnations and other presents to your own mother.
The extent of the celebrations varies greatly. In some countries, it is potentially offensive to one's mother not to mark Mother's Day. In others, it is a little-known festival celebrated mainly by immigrants, or covered by the media as a taste of foreign culture.[citation needed]
In the Roman Catholic Church, the holiday is strongly associated with reverencing the Virgin Mary. In many Catholic homes, families have a special shrine devoted to the Blessed Virgin Mary. In many Eastern Catholic and Eastern Orthodox Churches, a special prayer service is held in honor of the Theotokos Virgin Mary.
In Hindu tradition it is called "Mata Tirtha Aunshi" or "Mother Pilgrimage fortnight", and it is celebrated in countries with Hindu population, especially in Nepal. It is celebrated on the new moon day in the month of Baisakh, i.e., April/May. This holiday is based in Hindu religion and it pre-dates the creation of the Western-inspired holiday by at least a few centuries.[citation needed]
Feels Like 2011
Congratulations to all of the High School and College graduates. Our oldest daughter graduated from college yesterday and it was a wonderful day. The first paragraph is from Vanguard. The last section are some quotes that I found on the internet for your enjoyment.
Vanguard
The economy continues to seek traction. The latest reports suggest soft job growth, weak business activity in the huge service sector, and increasingly cautious consumers. Yet manufacturing activity appears to be solid and employers seem poised to hire—but who knows when? For the week ended May 4, the S&P 500 Index fell 2.4% to 1,369 (for a year-to-date total return—including price change plus dividends—of about 9.6%). The yield on the 10-year U.S. Treasury note fell 5 basis points to 1.91% (for a year-to-date increase of 2 basis points).
Feels Like 2011 Again
So far this year it feels a lot like last year relative to the US Stock Market, US Treasury bond yields, and commodity prices. Last year had a slowing in the middle part of the year and it appears that we are headed for the same this year. From an investing perspective it would be prudent to look at last year when making decisions.
I believe that it was very prudent to get more conservative late last week and early this week. It appears that we are headed for another buying opportunity later in the year.
Thoughts on the Merits of Work
The worst of work nowadays is what happens to people when they cease to work.
Gilbert K. Chesterton
A retired husband is often a wife's full-time job.
Ella Harris
Retired is being twice tired, I've thought first tired of working, then tired of not.
Richard Armour
To retire is to die.
Pablo Casals
Retirement may be looked upon either as a prolonged holiday or as a rejection, a being thrown on to the scrap-heap.
Simone De Beauvoir
Men and women approaching retirement age should be recycled for public service work, and their companies should foot the bill. We can no longer afford to scrap-pile people.
Maggie Kuhn
Sooner or later I'm going to die, but I'm not going to retire.
Margaret Mead
A man is known by the company that keeps him on after retirement age.
Author Unknown
The best time to start thinking about your retirement is before the boss does.
Author Unknown
Don't think of retiring from the world until the world will be sorry that you retire. I hate a fellow whom pride or cowardice or laziness drive into a corner, and who does nothing when he is there but sit and growl. Let him come out as I do, and bark.
Samuel Johnson
The harder you work, the harder it is to surrender.
Vince Lombardi
Retirement at sixty-five is ridiculous. When I was sixty-five I still had pimples.
George Burns
In this country men seem to live for action as long as they can and sink into apathy when they retire.
Charles Francis Adams
Retirement is the ugliest word in the language.
Ernest Hemingway
Choose a work that you love and you won't have to work another day.
Confucius
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