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Andrew Gordon
Andrew Gordon is an editorial contributor for Early To Rise Investor’s Edition. He has 20 years of experience working in infrastructure and environmental projects around the world. When he wasn't traveling, he taught marketing and finance courses at the state university of Maryland.
Mr. Gordon has authored several books for McGraw Hill and other publishing companies on energy markets, global countertrade practices and the hot growth sectors of China and Russia.
He is also a top-rated speaker at financial conferences.
Read Andrew Gordon's previous newsletter articles below:
My sister-in-law is starting her own business. Using her home as collateral (it’s paid off), she got a business loan. But before she started to spend that money, she called up several of the credit card companies she held cards with. This is what she told them: “I’m starting a new business. I’m going to be spending a lot of money. I can’t guarantee how much longer I’ll be able to make my monthly payments. But I have some money right now. And I’m willing to pay off 80 percent of what I owe you today if you’ll cancel my card in return.”
Without the ravenous Chinese maw gobbling up ores and coal and oil in great big heaping mounds, commodity-exporting countries are now feeling the pain. Welcome, Canada, to economic hard times. Welcome, also, Australia, Russia, and Brazil.
When the clock-radio woke me up the other morning, the first thing I heard was the results of a survey on what people least want to give up during these hard times. The three winners were tobacco, alcohol, and chocolate.
As I read the Financial Times on the flight from Baltimore to West Palm last week, my worst fears were confirmed. The market meltdown is truly global. And several countries - including Turkey, Iceland, and Argentina - can sell their bonds to investors only by paying out double-digit interest rates to...
The bailout is the equivalent of a dying patient taking aspirin. The relief is minor and temporary, but the outcome doesn’t change.
The good news: The market is offering bargain-basement sale prices on many stocks.
The market is going for 30 percent off. Yet investors aren’t buying. It’s like that 48-inch LCD screen you’ve been dying to buy… someday. But why buy it now when you can probably buy it in December for an additional 5 to 10 percent off? Or why not wait for the post-December sale when you can buy it at an even steeper discount. Maybe you can do even better if you wait until March. Surely, stores will be desperate to clear out their old inventory by then.
Unless you follow the market closely every day, you should have two stock-investing modes - as a holder of stocks and as a purchaser of stocks.
And what about selling? Selling now is not a good idea. The
One of the more unpopular asset classes right now is a stock/bond hybrid called preferred shares. While they’re called shares, they have more in common with bonds. Preferred shares have a par value, coupon, and maturity date, just like bonds. And the nice thing about them is that common shareholders don’t get a penny in dividends or distributions until preferred shareholders are paid off.
I was watching Fox Business News one Friday morning when I heard that statement. I waited to hear the name of the company, but it didn’t come up again. The broadcast moved on to another topic - oil - and my attention was diverted.
By Andrew Gordon | Wed, Nov 19, 2008
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