Welcome to the Curious Cat Investing, Economics and Personal Finance Carnival. This carnival is different than many blog carnivals: I select posts on those topics from what I read (instead of posting those that submit to the carnival as many carnivals do). If you would like to host the carnival add a comment below.
- The U.S. Content of “Made in China” by Galina Hale and Bart Hobijn (SF Federal Reserve) – “Goods and services from China accounted for only 2.7% of U.S. personal consumption expenditures in 2010, of which less than half reflected the actual costs of Chinese imports. The rest went to U.S. businesses and workers transporting, selling, and marketing goods carrying the “Made in China” label.”
- 7 equations to build a secure retirement by Robert Powell – the equations are not complex but might scare those that don’t like math. Even without really understanding the equations the text is useful.
- Stock Market Capitalization by Country from 1990 to 2010 by John Hunter – The USA was 32.5% of the total stock market capitalization of the global stock markets in 1990. The USA grew to 46.9% as the tech, finance and housing bubbles were all underway (also Japan was stagnating and the Chinese stock market hadn’t started booming to a significant extent) in 2000. By 2010 the USA was back down to 31.4%.
- 5 stages of retirement crisis–and what to do about yours by Jim Jubak – “Certainly you weren’t planning for three-month Treasury bills to be paying you 0.08% or 10-year Treasuries 1.61%. And you’re worried by projections that say the real return on stocks going forward is going to be more like 5% (if we’re lucky) than the 7.5% real return that has been the assumption of choice recently. (That assumption replaces the 10% assumption that was the common wisdom in the years before the 2000 bear market.)
- One more summit: The crisis rolls on by Charles Wyplosz – “There was nothing on collapsing Greece, nothing on unsustainable public debts in several countries, and no end in sight to recession in an increasing number of countries.”
- US Stocks are Expensive and Bonds are Disgusting by Robert Huebscher – “Abnormally high earnings will lead to disappointing US equity returns, Grantham said. ‘The great majority think US equities are reasonably cheap, he said, ‘but we don’t, because we want them to be priced to normal earnings.’ … The ‘real problem’ among asset classes is bonds, Grantham said. Their overvaluation is the result of Fed policies that have artificially depressed real interest rates.
- Real House Prices and Price-to-Rent Ratio by Bill McBride – “In real terms – and as a price-to-rent ratio – prices are mostly back to late 1990s or early 2000 levels.”