Money Show, Opening Remarks

Kim Githler:
If you are smart, in 1807 you live in London, England, in 1907 you live in New York USA, and in 2008 you live in Asia. This is a quote from Jim Rogers. She says that at this show you can get a lot of stock tips, but before you buy, please do your own due diligence.

She also said what a number of other people said, and that is inflation is returning but the velocity of money has not returned. (Velocity of money is how fast money circulates.)

Charles Githler:
Charles points out that all the economists that are in Obama’s administration are Keynesian. None of the economists that Reagan had were Keynesian.

Charles points out that it is important to always cut your losses. If you lose 8%, to get even you need to earn 9%, but lose 15%, you need to gain 18%, lose 25% and you need to gain 33%, lose 35% and you need to gain 54%, but if you lose 45%, you need to gain 82%.

The stock market has cycles that last around 17 years, where they go up for 17 years and there are volatile but do not progress for 17 years. We are in a current flat cycle and it has only been going on for 11 years.

Bart DiLiddo:
Every day, 10,000 Americans become 35. In Canada 1,000 people become 65. People used to want capital gains, but now people want retirement Income. They particularly are looking for dividend income, especially, monthly dividend income. He thinks that people should also look for income from trading stock options.

He feels that Investors want to preserve their portfolios when markets go down. How he thinks they should do is using counter ITFs to make money in the downturns. He thinks we should use the Armageddon Collar whereby you sell calls and use the money buy puts. This would have the effect of limiting your increases in portfolio value, but will limit losses. (Personally, I have never traded options, so I would not know about such moves.)

Is last remark was that the TSX has peaked in April, but corporate earnings are still rising.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.